Contrary to the headline's claim, Joann Fabrics is not going out of business entirely. The craft retailer is restructuring under Chapter 11 bankruptcy and plans to close some unprofitable stores. The company aims to emerge from bankruptcy with a stronger financial footing and a more sustainable store footprint. The restructuring will involve financial stakeholders and includes a commitment for $50 million in new financing.
Struggling electric truck manufacturer Nikola has filed for bankruptcy after years of financial difficulties and broken promises. The company, once touted as a Tesla rival, faced numerous setbacks including production delays, fraud allegations against its founder, and dwindling investor confidence. This bankruptcy filing marks the end of the road for the troubled startup, which was unable to overcome its challenges and deliver on its ambitious vision for zero-emission trucking.
Hacker News commenters on Nikola's bankruptcy expressed little surprise, with many citing the company's history of dubious claims and questionable leadership as the root cause. Several pointed to Trevor Milton's fraud conviction as a pivotal moment, highlighting the erosion of trust and investor confidence. Some discussed the challenges of the electric vehicle market, particularly for startups attempting to compete with established players. A few commenters questioned the viability of hydrogen fuel cells in the trucking industry, suggesting that battery-electric technology is the more practical path. Overall, the sentiment reflects skepticism towards Nikola's long-term prospects, even before the bankruptcy filing.
Electric truck maker Nikola has filed for Chapter 11 bankruptcy protection after struggling for years to meet production targets and facing financial difficulties. The company, once touted as a Tesla rival, has seen its stock price plummet and faced numerous setbacks, including fraud allegations against its founder. Nikola's bankruptcy filing signals a significant downturn for the once-promising electric vehicle startup.
Hacker News commenters on Nikola's bankruptcy filing express little surprise, with many citing the company's history of misleading claims and lack of viable product as the root cause. Several point to the founder, Trevor Milton's, fraud conviction as a pivotal moment, highlighting the damage done to the company's credibility. Some discuss the broader implications for the EV truck market, suggesting that Nikola's failure doesn't necessarily reflect poorly on the sector as a whole, but rather on companies built on hype rather than substance. A few commenters express skepticism about hydrogen fuel cell technology's viability in the trucking industry, while others suggest Nikola's existing assets might be valuable to other players in the market. There's a general sense of disappointment and a belief that Nikola's downfall was predictable.
Summary of Comments ( 30 )
https://news.ycombinator.com/item?id=43173341
HN commenters discuss the surprising nature of Joann's closure, given its apparent popularity and the enduring hobby of crafting. Several suggest the "going out of business" phrasing is misleading, pointing to the Chapter 11 bankruptcy filing as a restructuring move rather than a complete shutdown. Some speculate about the reasons for the financial trouble, including poor inventory management, high rent costs, competition from online retailers like Amazon and Etsy, and the cyclical nature of crafting trends. Others lament the potential loss of a valuable resource for crafters and the impact on local communities. A few express skepticism about the long-term viability of brick-and-mortar craft stores in the current retail landscape.
The Hacker News post titled "Fabric and craft retailer Joann to go out of business, close all of its stores" generated several comments discussing the news, primarily focused on clarifying the headline's inaccuracy and speculating on the reasons behind Joann's financial struggles.
Several commenters immediately pointed out that the linked AP News article states Joann is not going out of business entirely, but rather filing for Chapter 11 bankruptcy, which allows for restructuring and potential continuation of operations. This correction was a dominant theme in the early comments.
Some users expressed surprise at Joann's financial troubles, citing the apparent popularity of crafting, especially during the pandemic lockdowns. They questioned whether the rise of online marketplaces like Etsy, offering similar handmade goods, might have contributed to Joann's struggles. Others speculated about changing demographics, wondering if younger generations are less interested in traditional crafts.
The increasing cost of goods and inflation were also brought up as potential factors impacting Joann's profitability. One commenter mentioned the specific example of fabric prices increasing substantially.
Several users shared anecdotal experiences with Joann stores, describing them as often cluttered, poorly organized, and offering subpar customer service. These observations suggested that operational issues, in addition to broader economic factors, might be playing a role in the company's financial difficulties.
One commenter suggested that Joann's reliance on couponing might be a sign of unsustainable business practices, training customers to wait for discounts rather than paying full price.
While the prevailing sentiment acknowledged the challenges facing brick-and-mortar retail, several commenters expressed hope that Joann could successfully restructure and emerge from bankruptcy. Some also noted the importance of such stores for local crafting communities.
There was some discussion regarding the private equity ownership of Joann, with some suggesting that leveraged buyouts and subsequent debt burden could have contributed to the company's financial woes.
Finally, a few commenters discussed alternative craft retailers, highlighting the competitive landscape and the potential for other players to absorb some of Joann's market share.