There have been rumors that “Is Hobby Lobby going out of business.” Is this true? Let’s find out what Hobby Lobby has to say about it.
A lot of companies are plagued by rumors that they will be forced to shut down. A number of rumors have been swirling around Hobby Lobby in recent years, following temporary closures that raised questions about the company’s future plans. What’s the deal with Hobby Lobby going out of business?
Despite the fact that there is always the possibility of a large company going out of business suddenly, how is Hobby Lobby financially doing? Let’s take a look at how Hobby Lobby has done over the past few years.
Also check: How Much Does Hobby Lobby Pay In California?
Is Hobby Lobby Going Out Of Business
Hobby Lobby has faced a number of lawsuits over the years.
There have been numerous lawsuits filed against Hobby Lobby, a store that sells craft supplies in almost every state. Due to its founders’ evangelical Christian faith, the company frequently goes against societal expectations regarding religious freedom.
Since Hobby Lobby was founded in 1970, David Green has been the company’s Founder and CEO, worth approximately $14 billion. Hobby Lobby faced a high-profile lawsuit in 2014 when the Supreme Court ruled that companies like Hobby Lobby could not provide employees with certain forms of contraception.
While Planned Parenthood and Hobby Lobby disagreed with the decision, Hobby Lobby said it was only four types of contraception that could terminate life, not women’s right to contraception. There were concerns that the case could lead to other employer policies restricting same-sex marriages, including refusing to provide benefits to same-sex spouses.
Also, Hobby Lobby was criticized for failing to close stores immediately during the COVID-19 pandemic. (It eventually complied with closures and furloughed employees.)
For allegedly violating the Americans With Disabilities Act (ADA), Hobby Lobby was sued in July 2022 by a former employee. In Olathe, Kan., managers refused to let an employee bring her service dog to help her cope with PTSD symptoms. The company then terminated the employee without providing a reasonable accommodation, according to the lawsuit.
Hobby Lobby remains a family-owned business.
The company is owned by David Green and his wife, and in the fall of 2022, Green, in an op-ed with Fox Business, announced his plans to give away the business.
As a result of moving 100 percent of the company’s voting stock into a trust, the wealthy founder plans to support causes he supports. In an interview with Stuart Varney, Green said, “We really wanted to do something that would matter a hundred years from now.”
Hobby Lobby’s founder decided to “give away” the company because he wanted to follow the Bible’s teachings. According to Green, he and Patagonia founder Yves Chouinard are choosing purpose over “going public” or selling the company to pass it on to his children.
His wealth has already gone to fund Christian ministries and initiatives, including the Museum of the Bible in Washington, D.C. He reportedly spent $500 million of his own money on the project.
In July 2021, Steve Green, son of Museum of the Bible founder David Green, returned thousands of allegedly “looted artifacts” to Iraq. According to the Post, the museum set an example of responsible ownership of foreign cultural heritage.
Hobby Lobby money will be used to support Christian ministries in a variety of ways. Green refers to this as “stewardship,” or using the money he founded for purposes other than his own.
Hobby Lobby isn’t going out of business — at least not yet.
Despite Green’s recent decision to “give away” Hobby Lobby, the company will continue to contribute to causes he values. COVID-19 restrictions forced the company to close stores temporarily.
Does the CEO’s assurance that there are no plans to close locations constitute a guarantee, or are there still external factors that may cause the company to close?
Do external factors still pose a threat to the company’s ability to continue operations, despite the CEO’s statement that no plans are being made to close locations?
Despite the CEO’s assurance that the company has no plans to close locations, external factors could lead to the company terminating its operations in November 2023.
Store closures can be influenced by a number of external factors, including crime rates in certain areas, which can have a significant impact on employee and customer safety and security. Even well-established companies like Target have closed nine stores because of crime-related safety threats. As a result of this, companies must remember that maintaining a secure environment for business operations is a challenge.
Several sources of safety threats pose a threat to businesses as well. Due to safety concerns arising from crime, homelessness, and drug use in bathrooms, Starbucks CEO Howard Schultz has announced plans to close more stores. In addition to impacting customer experiences, these concerns also expose businesses to substantial liabilities.
Further, theft can have a significant impact on a company’s financial performance and can result in store closures. Walmart CEO Doug McMillon has warned of store closures if theft rates do not decrease. The theft problem affects retailers’ profitability and ability to remain open in certain markets.
Despite initial assurances provided by CEOs, these examples demonstrate how external factors can cause store closures. Investors and stakeholders should consider potential external factors capable of influencing the company’s operations and resulting in store closures, even though the CEO’s statement may reflect the company’s current position and objectives.
It is natural to trust a CEO’s statement that no store closures are planned, but it should not be regarded as a guarantee in itself. A company’s locations are heavily affected by external factors such as crime, safety threats, theft, and security risks. Keeping an eye on these external factors is essential to ensuring sustainable business operations and mitigating the risks that could lead to store closures.