February 23, 2026
Fabric vs finance: the plot unravels
How in the Hell Did Joann Fabrics Die While Best Buy Survived? It Wasn't Amazon
Readers blame debt vultures—and roast Best Buy’s ‘meh’ era
TLDR: Joann’s collapse wasn’t about Amazon; it was about buyout debt hollowing a once-profitable chain, while Best Buy survived by being “good enough.” Comments blame private equity, torch Best Buy’s weak app and stock, and demand bans on leveraged buyouts—turning retail woes into a fight over finance, policy, and vibes.
The thread turned a corporate autopsy into a brawl. The article says Joann didn’t die from the “Amazon effect” but from debt piled on during a buyout, leaving empty shelves and understaffed cutting counters while demand still existed. Meanwhile, Best Buy didn’t reinvent retail; it simply stabilized—matching Amazon’s prices, courting brands, keeping stores “good enough.” That contrast had commenters lighting torches: “private equity vultures” became the rallying cry, pointing to Fortune reports and Joann’s 96% cash‑flow positive stores at bankruptcy.
Others turned the spotlight on Best Buy’s own cracks. One shopper called it a “shadow of its former self,” while another warned “Best Buy isn’t long for this world,” citing a sluggish app and invoking the dreaded “Fry’s fate” meme. Then came the policy fight: one camp demanded bans on leveraged buyouts—explained as buying a company with borrowed money and dumping the debt onto it—while skeptics asked why banks keep funding deals if they implode.
Humor wasn’t far behind: “Geek Squad can’t patch vibes,” joked one, and cosplayers mourned their bolt‑cutting rites. The thread split into two loud sides: finance killed Joann vs. management and experience matter more. Either way, taxpayers eat the fallout, and readers want answers—with more receipts.
Key Points
- •Joann Fabrics closed all 800+ stores on May 30, 2025, liquidating the chain and cutting 19,000 jobs.
- •Despite demand, Joann’s failure is attributed to debt-laden capital structure and eroded operational capacity, not e-commerce disruption.
- •Ninety-six percent of Joann’s stores were cash-flow positive at its 2024 bankruptcy filing.
- •Best Buy survived by stabilizing operations, matching Amazon’s prices, and securing vendor investment in-store.
- •Coresight Research reported 7,300 U.S. store closures in 2024 (up 57% YoY) and projected up to 15,000 closures in 2025, challenging the simple “Amazon effect” narrative.