With Hobby Lobby known for being in many controversies, it makes sense for people to assume that the company is on its way out of business.
In fact, the recent company-wide closure made this idea grow even stronger. So, if you’re interested in knowing about the future of the company, read this article to learn more!
Is Hobby Lobby Going Out of Business In 2023?
Hobby Lobby is not going out of business in 2023. This was determined by looking at the company’s store growth, which has gone up in recent years. Hobby Lobby is also maintaining its trend of raising employee wages, which is a positive sign for the finances. Overall, most reports of closure can be traced back to a Facebook hoax.
Continue reading this article to learn more about whether Hobby Lobby is going out of business, including why people think it is, why it likely isn’t, and more!
How Long Has Hobby Lobby Been in Business?
Hobby Lobby has been in business since August 1972 when the founder, David Green, opened the company’s first store in Oklahoma City.
However, the founder and his wife had been working in arts and crafts, specifically making custom frames from their home, since 1970.
Did Hobby Lobby Close and Fire Employees?
Hobby Lobby closed all its stores and put nearly all of its employees on mandatory leave without pay in April 2020.
This move was in response to a worldwide crisis that was first being recorded in the country, and different states were issuing stay-at-home orders.
When this happened, the official statement the company put out stated that it was: “ending emergency leave pay and suspending the use of company-provided paid time off benefits and vacation.”
This explanation does not make any mention that the employees had been fired. As far as can be determined, the employees were furloughed and returned to the stores when they reopened shortly after in July.
Is Hobby Lobby Doing Well Financially?
Hobby Lobby does not release its financial reports, so it’s unclear how the company’s finances are, but we can look at other factors to build a good guess.
Regardless of the number of stores, the company’s closed, the total store count has gone up in the past few years.
For example, it’s gone from about 840 stores at the start of 2019 to over 900 today.
Hobby Lobby has also maintained its trend of raising the minimum wage, with the most recent change taking it to $18.50 an hour.
The company also only ships to 48 states and doesn’t offer international shipping, not even to Canada, indicating that it’s comfortable with its current market and customer base.
Is Hobby Lobby Closing Stores Permanently?
Hobby Lobby is not closing its stores permanently at this time, but there are different possible sources for why people think that the company is going out of business.
One of the sources comes from early 2020 during the period when one worldwide event was first being detected in several places across the country, and stay-at-home orders were being issued.
Hobby Lobby initially refused to close down, stating it was an essential business because it provided school supplies and fabrics.
However, at the start of April, the company backtracked on this stance when it closed down its stores and furloughed almost all employees without pay and other benefits.
When the company made this announcement, the news was spread incorrectly across social media, with some people interpreting it as the business closing down permanently.
Over a year later, a Facebook post popped up that further spread the supposed news that Hobby Lobby was closing down permanently.
It used a letter that the company’s CEO David Green wrote in USA TODAY back in 2012.
This letter announced that the company was taking the federal government to court so it wouldn’t have to cover an employee’s birth control.
This post took the words from this column and added some false information to make it seem like it was written recently and in response to events of the time.
For starters, the post made references to the “liberal media” that were not in the original piece of writing.
This reference was followed by an urge for the reader to share the post, which is usually only seen in pieces of misinformation that the creator wants to go viral on social media.
This post, titled “Hobby Lobby, We May Close” was spread by a lot of people, and gained so much traction that Facebook had to step in. This post was also fact-checked by Politifact.
At the time this post was making the rounds, Hobby Lobby had already reopened and had been in operation long after closing down in April 2020.
As far as the lawsuit the company was bringing against the government, that had been concluded in 2014, and the company was not forced to shut down as a result.
Is Hobby Lobby Closing in Fargo?
As far as the information is available, Hobby Lobby is not closing in Fargo. The company opened its location at 4427 13th Ave in 2003, and it seems to be going well for the brand.
Hobby Lobby is not going out of business any time soon, as it has been growing its store count over the years as well as its minimum wage.
Hobby Lobby is also not expanding into new markets, which is probably a sign that it doesn’t need to for now.
Many people assume that the company is going to close, mostly because of the spread of misinformation on social media. However, these rumours have since been debunked.