Date: October 22, 2007
Vol. XI, No. 20

Printer Version

TABLE OF CONTENTS

COMMENTARY: THOUGHTS ON SCRAPBOOKING 

1. "We Want Our Hobby Back" is a thoughtful, intelligent essay by a scrapbooker on the evolution of the category and the Creating Keepsakes controversy. It should be must reading for all scrapbook vendors and retailers. Visit http://civilconversation.blogspot.com. (Scroll down to the Oct. 18 entry.)

2. I heard an unconfirmed report that Wal-Mart was shrinking the size of its photo album area, believing more consumers are keeping their photos in a computer or online. Before scrapbooking, millions of consumers had billions of photos in shoe boxes. If we're not careful, one day millions of consumers will have billions of photos ... in their computers.

Industry Research. CLN has updated the listings and contact info for the various market research studies related to our industry.

Kate's Collage. PricewaterhouseCooper and TSN Forward's fascinating report on retailing in the year 2015 and the challenges awaiting retailers and vendors.

"Vinny Da Vendor". What Mrs. Grossman's and C&T Publishing are doing for the environment – and Tara Materials is doing for art programs that honor our military vets.

Memory, Paper & Stamps. Reactions to the CLN article saying the category's number one priority should be inspiring consumers to print their photos, not leave them in a computer.

Note: To read the columns, click on the titles in the left-hand column. If it appears to be an "old" column, click on the "Refresh" or "Reload" button on your browser.

Michaels announced it was closing its 11 Recollections stores. Will that make a significant difference for independents? For vendors? Is it a sign scrapbooking is slowing down? To vote, click on Industry Polls in the right-hand column or click HERE.

Attendees were a little happier with the 2007 trade shows than exhibitors, probably because they had seminars and workshops in addition to visiting exhibits; 26.7% said the shows they attended were an excellent investment in time and money. Another 36.7% believed the shows were a good investment. Only 3.3% of the attendees thought the shows were a bad investment, and one-third thought the benefits of attending were about equal to the cost.

Only 14% of exhibitors rated the shows as an excellent investment, and 39.6% said they were good. Only 2.3% believed the shows were a bad investment, while 14% thought they weren't particularly good. The remaining 30.2% said the pluses and minuses were equal.

Michaels announced it will close its 11 Recollections stores and three of its four Star Decorator's Wholesale operations by the end of the first quarter of fiscal 2008. In a letter, CEO Brian Cornell said the company will look to place employees in existing Michaels and Aaron Brothers stores in their markets.

Why the closures? Cornell said, "... as we looked at the long-term focus of the company we realized that we needed to be able to align our resources for maximum impact on the sales, profits, and brand loyalty of our core business. We realized that we have many opportunities within our core businesses of Michaels and Aaron Brothers, coupled with our strategic initiatives that deliver the results we're looking for faster and with less investment of capital and risk."

Michaels launched the Recollections chain in 2003 and it quickly grew to 11 stores in four states, but the store count has remained at 11 since then.

"I had a hunch this was coming," a vendor told CLN. "When we first met with them, their plan was to have 200 Recollections stores. They got to 11 and held. I figured they would run out the leases and shutter the stores. I have some product there but even with 11 stores their sales didn't make them a big customer. We were even questioning if it was worth all the hoops we had to jump through to deal with them."

The three Star Decorator's Wholesale operations to close are in Arizona, California, and Georgia. The fourth, in Dallas, will remain open but be renamed Moskatel's.

The company expects charges of $11 million-$14 million in the third quarter related to lease obligations, inventory liquidation, asset-related write-downs, and severance benefits.

The company currently operates 955 Michaels stores and 168 Aaron Brothers stores. Cornell said it will open 40-50 stores next year.

Michaels updated its guidance for the second half and full year of fiscal 2007. For the second half of the year, the company lowered its expectations of same-store sales growth to 1%-3%, due to unseasonable weather; that was partially offset by an increase in the value of the Canadian dollar.

Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of cash flow) is now expected to be $400 million-$415 million versus $411 million in the prior year period, which included a 53rd week. It includes incremental costs associated with consulting expenses and additional market-driven cash compensation costs.

For the fiscal year, same-store sales growth is expected to be 1%-2%, with total sales increasing 2%-3%. Total sales growth will be negatively impacted by approximately 1.5% due to the absence of a 53rd week this year. Gross margin is expected to increase 10-20 basis points and adjusted EBITDA for fiscal 2007 is expected to be $600-$615 million versus $617 million for fiscal 2006 which included a 53rd week. Included in the adjusted EBITDA are costs (consulting, etc.) totaling approximately $25 million.

Jo-Ann's announced The Debbie Mumm Collection®, designed by artist/author Debbie Mumm, will be in all stores Nov. 1. Her artwork and designs will be featured on hundreds of products including fabric, ceramics, partyware, kitchen textiles, yarn, and seasonal goods.

Jo-Ann's Travis Smith, Exec VP/Merchandising and Marketing, said, "Debbie has a 20-year history of success with her designs for fabric, ceramics, scrapbooking, quilting, and seasonal products – all of which are important in the Jo-Ann Stores product mix. And our website statistics show that Debbie Mumm is the most searched designer on Joann.com, letting us know that customers are looking to us for Debbie's designs."

"I've been dreaming of an opportunity to have a meaningful assortment of products featuring my design collections in one place," Debbie Mumm stated. "When we surveyed visitors to my web site, we discovered [Jo-Ann's] stores was our customers' favorite place to shop. So working with Jo-Ann's really is a great match."

The Collection will start with holiday-season products, but also include a broad range of everyday products including fabric and craft supplies as well as seasonal product assortments. Mumm will actively inform customers with how-to seminars and projects at the stores and contribute projects to Joann.com.

Founded in 1986, Mumm's company's licensing program has generated more than a half billion dollars in retail sales. She is also the author of 50+ quilting, craft, and home dec books that have combined sales of 2.5+ million copies.

Controversy has surrounded Creating Keepsakes Hall of Fame competition once again. Blogs and message boards are filled with angry charges that one of the winners had violated the rules and CK had overlooked it. CK's original defense did not please everyone, and now CK advertisers are being emailed with complaints.

Nancy Nally reported on the issue on her blog, http://www.scrapbookupdate.com; another version is at http://kellyedgerton.typepad.com. (Scroll down a bit.) The center of the controversy, Kristina Contes, discusses it on her blog at http://soundsofscience.blogspot.com (Oct. 16 entry). Comments are also at the CK site, www.creatingkeepsakes.com.   

(Note: Bloggers are constantly updating their entries, so even more has been written in the blogs since this article was written.)

In a letter to CK readers sent late last Friday, CEO Dave O'Neil said the problem was a new staffer who was unfamiliar with HOF rules. When Contes called and asked that a photo credit be added to one of her layout pages, the staffer acquiesced, not realizing the contest rules require all photos be taken by the contestant.

CK will now require all contest winners to sign an affidavit stating their entire entry is their own work. The contestant in question has been disqualified, as will any other winners who do not sign the affidavit. The 26th place "winner" will be added to the HOF and the February issue of CK will include a special supplement honoring the winners.

(Comment: Last year's contest caused an uproar because one of the winners was a man. Moral of this year's controversy: When your business makes a mistake, admit it quickly and clearly, and move on before unhappy customers can rant to the world on the Internet.)

1. R.R. Donnelley & Sons signed a definitive agreement to acquire Cardinal Brands, a manufacturer of the Generations™ line of scrapbook products and other business-related lines. The price is $130 million before reduction for repayment of indebtedness, retirement of preferred stock, and other items. The all-cash deal should close in the fourth quarter of 2007.

Cardinal is owned by the private equity firm Westgate Group and the Cardinal management. Headquartered in Lawrence, KS, Cardinal has manufacturing operations in the U.S., Mexico, and the United Kingdom. Founded 140+ years ago, R.R. Donnelley is a huge provider of print and related services; its stock is traded on the NYSE under the symbol RRD.

2. Teters Floral Products was acquired from Decorative Concepts by a group of senior managers and an investment group. Teters was founded in 1957; product categories include stem flowers, bushes, vines, garlands, swags, and pre-made arrangements, as well as domestically assembled memorial wreaths, sprays, and other accessories. This spring Teters formed a wholly-owned, Hong Kong-based import subsidiary, The Creative Connection, which provides direct importation of permanent floral and decorative accessories under private label for high-volume retail chains.

The acquisition comes on the heels of Teters' receipt of the SPARC Award (Supplier Performance Award by Retail Category), an industry-wide vendor achievement award. Teters was recognized alongside industry leaders such as General Electric, Procter & Gamble, and Sony for its commitment to serving the retailer.

If ever there was a holiday season when our industry's retailers should emphasize the cost savings of making gifts rather than buying readymades, this could be the year.

The National Retail Federation forecast that sales will rise 4.0% to $474.5 billion. That's below the 10-year average of 4.8%, and is the slowest holiday sales growth since 2002, when sales rose 1.3%. "Retailers are in for a somewhat challenging holiday season as consumers are faced with numerous economic obstacles," said NRF Chief Economist Rosalind Wells. "With the weak housing market and current credit crunch, consumers will be forced to be more prudent with their holiday spending."

"This holiday season is going to be terrible," Howard Davidowitz, Chair of the retail consulting and investment banking firm Davidowitz & Associate, told CNNMoney. He predicted sales will rise only 2% this season. Why? "The economy is moderating," Davidowitz said. "Consumers have never been in more debt. They've made up for their negative savings by using their homes as a piggy bank, which they can't do anymore."

"Wal-Mart chose to begin the [toy] discounts this holiday shopping season before the holiday shopping season even began because they are deeply concerned that this holiday shopping season will be one of the weakest on record," wrote Stock Traders Daily. "Wal-Mart is not only the pricing leader in the retail sector, but they have their thumb on the consumer better than probably anyone else in the country."

General sales were disappointing as retailers blamed the weather – the eighth warmest September in 113 years, MarketWatch reported. The Int. Council of Shopping Centers reported same-store sales rose only 1.7%, the worst performance in five months, and most retailers' sales were below analysts' expectations.

Wal-Mart's overall same-store sales rose 1.4%, lower than expected, and the U.S. stores' sales rose only 0.8%. Grocery and pharmacy sales were strong, officials said, but apparel and home were not. However, the company raised its third-quarter earnings projection from 66 to 69 cents/share, thanks to better margins and cost controls. In a press release, the company said "Company research reinforces that customers remain concerned about their finances, especially the cost of living."

Target's same-store sales rose only 1.2%, the lowest increase in recent memory. J.C. Penney and Nordstrom cut their quarterly profit estimates due to disappointing sales.

How did the industry get to where it is today? Where did it come from? How did it evolve? To answer those questions, CHA created a new area of its website, www.craftandhobby.org, to honor the past and generate inspiration. The "History of Success" section chronicles extraordinary moments in craft history, highlighting notable events, innovations, milestones, and individuals that contributed substantially to the growth of the industry. The site uses multimedia – photos, video clips, and written content – to give diverse member perspectives and illustrate how the industry has thrived and progressed over the years.

Visitors will find an historical time-line and a direct link to an online library, plus a section dedicated to CHA history. It also includes informative interviews from the current year in the "History in the Making" section, and a "Then & Now" section which offers comparative information on education, products, and events from the past and present.

(Note: CHA plans to expand the site by offering companies and individuals an opportunity to contribute their own histories and memories. Details will be available soon.) To view the "History," visit www.craftandhobby.org and click on "History of Crafting."

In the previous issue CLN concluded a Business-Wise column with "Remember when Sears seemed invincible? And then Kmart? Now it's Wal-Mart, but we're seeing cracks in the facade these days."

Two days later the Wall Street Journal published a front-page article, "Wal-Mart Era Wanes Amid Big Shifts in Retail." Among the problems: "swifter, more nimble rivals" who offered "greater convenience, more selection, higher quality, or better service."

Business Week offered another angle on Wal-Mart's situation: "... many of Wal-Mart's workers feel outright hostility toward the company, and, by extension, they often treat customers with indifference or worse. That puts Wal-Mart in a box. Without reasonable service, the company is forced to compete almost solely on price. That in turn squeezes margins and makes it difficult to pay employees the better wages and benefits that could boost morale. It's a vicious cycle that now appears to be working against Wal-Mart."

"For the first time in a long time, quality has a chance to gain on price," Lee Peterson, VP of the consulting firm WD Partners, told the Journal.

A week later Business Week reported Wal-Mart has launched a new strategy: abandoning its efforts to woo higher-end consumers and concentrating on its core customer by offering low prices and a series of services such as high-speed Internet service in rural areas, check-cashing for the "unbanked," and in-store, inexpensive medical clinics. No mention of the company reviving its fabric departments or layaway service.

Personal financial expert Suze Orman will be the keynote speaker for the Feb. 10-13, CHA Show in Anaheim. Orman's topic will be how people's relationship to money affects their businesses and lives. She will speak at 6:30 pm Sun., Feb. 10 at the convention center. Tickets are $30 for CHA members and $60 for non-members when purchased before the show; $50 for members and $100 for non-members when purchased on-site.

Orman has written six NY Times bestsellers, including Suze Orman's Financial Guidebook. She also writes a syndicated column, Women & Money and is a contributing editor to O, and O at Home. She has a bi-weekly column, Money Matters, on Yahoo! Finance, and bi-monthly columns for the Costco Connection and for Lowes Moneyworks. Suze hosts The Suze Orman Show, on CNBC and the Financial Freedom Hour on QVC,. and has appeared numerous times on The View, Larry King, and The Oprah Winfrey Show.

For more info, including exhibitor listings, travel discounts, and other show highlights, visit www.chashow.org.

Three short years ago, magazine publishers seemed to abandon the concept of a general craft magazine and turned to publications that concentrated on a particular crafting activity. Crafts, for example, once the industry's largest consumer craft magazine, became Paper Crafts.

Now that trend may be changing again. Kalmbach is launching Make It Mine; Amos has redesigned Crafts 'n Things; DRG is offering GiftMaker; Belvoir Media Group announced the Oct./Nov. issue of its Mary Engelbreit's Home Companion has the most advertising in its 10-year history; All American Crafts has Create and Decorate; and Today's Creative HomeArts, published by the North American Membership Group, is going very strong.

Readership surveys that CLN has seen indicate the readers enjoy doing a variety of crafts, rather than being dedicated to a single category such as scrapbooking, painting, or sewing. (Comment: vendors will spend the bulk of their consumer ad dollars in their niche magazines, because those readers are obviously true enthusiasts of that particular category. But that's fighting for market share; it's not attracting newcomers.)

Thus far, 836+ booths have been assigned for The National NeedleArts Assn. Long Beach show, including 13 new exhibitors. There will be 91+ technique and business classes. The show floor is open from Jan. 11-13, but classes begin Wed., Jan. 9. Online registration is available for TNNA members at www.tnna.org. Due to demand, TNNA has also added the Coast Long Beach Hotel to its list of show hotels.

Highlights include a new TNNA tradition on Thursday evening, Sample It!, followed by a chance for attendees to mingle with other professionals at the Galleria. The evening culminates with the Fashion Show which will highlight spring trends. Other highlights: the Retailers' Luncheon, bi-annual Product Segment Group meetings, and the annual meeting.

For info, call 740-455-6773, email tnna.info@offinger.com  or visit www.tnna.org.

Looking to help a great cause and do some Christmas shopping? The Rwanda Knits Fall Benefit Auction has begun and will last until Oct. 28 at 11 pm EST at www.rwandaknitsauction.org. The auction features unique knitted and/or crocheted garments from top designers (e.g. Lily Chin, Nora Gaughan, Nicky Epstein, Doris Chan, etc.); magazines (Vogue Knitting, Knit Simple, Adorn, Creative Knitting, Crochet, Knit 'n Style, Cast On ,and the Lily Chin Collection); and yarn companies (Berroco, Reynolds, Tahki, Stacy Charles, Kertzer, and Caron).

All proceeds will be used to purchase yarn to be distributed to all 17 knitting cooperatives; 50% of the purchase price of each item is tax deductible.

Founded in 2003, the Rwanda Knits project provides knitting machines and technical and business training to low-income women in Rwanda to enable them to earn a living through knitting. The program has grown to 17 knitting cooperatives throughout Rwanda and has assisted 1,700+ women. Before Rwanda Knits, most were subsistence farmers, dependent on help from family or friends, or lived in refugee camps. Most were widowed by the genocide or the AIDS epidemic. Rwanda Knits focuses on helping very poor and often illiterate women who do not have a reliable source of income, those making less than $1 per day. Since 2006 when the machines arrived, the teachers have earned $570-$850 from teaching and making items for export. To learn more about the program, visit www.rwandaknits.org.

1. CKMedia announced Memorytrends magazine is being rolled into Craftrends starting with the October issue. Craftrends will be published six times in 2008 starting with the January/February issue. Qualified subscribers of Memorytrends will receive Craftrends.

2. Amos Publications acquired Rubber Stamper Magazine from Hobby Publications and will merge it with Crafts 'n Things, increasing C'nT's circulation by 15,000.

3. Crafts 'n Things has also undergone a re-design with its Nov./Dec. issue. Its 50+ paper projects section will expand its size from 84 to 136 pps. Holiday, home dec, and gift-giving are the themes of the other projects.

4. The October issue of More contains a full-page ad for Martha Stewart sewing machines manufactured by Singer, Pfaff, and Husqvarna Viking, all owned by VSM Group.

5. Yarn Market News is sponsoring a Smart Business Conference for retailers in Chicago Mar. 24-26. The Conference will offer in-depth panel discussions, interactive workshops, and presentations with business experts and yarn industry insiders. (Comment: the lineup looks excellent – and relevant for independent retailers in all product categories.) To register online, visit www.yarnmarketnews.com/conferences. For a schedule and info, visit www.yarnmarketnews.com, call Karin Strom at 212-225-9018, or email karin@yarnmarketnews.com.

6. CHA has expanded the circulation of its magazine, CHA Portfolio, to include every CHA member, not just the designated contact at each member company. The additional circulation begins with the Fall issue.

7. To celebrate the 10th anniversary of Interweave Knits, the editors picked their favorite designs and published them in a new book, The Best of Interweave Knits: Our Favorite Designs from the First 10 Years (Interweave Press). Now readers are invited to nominate their all-time favorite pattern from Interweave Knits online at: www.bestofknits.com. The nominating process continues through Dec. 15. There will be a vote of the top 10 nominated patterns in January on KnittingDaily.com, and the top five vote-getters will be published in a free eBook, The Best of Interweave Knits: The Readers' Choice Awards Collection, which will be available on KnittingDaily.com next Spring.

(Note: This is from Norm Carlson, the founder and former owner of Crafters Home.)

I read with much interest your announcement about McGill moving production back to the U.S. Maybe it's time for some of these manufacturers to take a look at Mexico if they can't be competitive manufacturing here at home. Labor rates are still much lower than U.S. rates, shipping should be considerably less than shipping from China, and with the Free Trade Agreement, taxes should be less.

If we could increase the job opportunities for workers in Mexico, wouldn't that be better than building a fence along the border?

As a side note, I have a construction business here in Arizona. My current work crew is 100% Mexican (yes, they did have the proper paperwork), and they are all very hard workers. I have hired three white guys and had to let all three go due to laziness and shoddy work. It is no wonder that most manufacturing is done overseas now, if manufacturers are having the same experience as I have had over the past three years. My men are paid anywhere from $17 to $25 per hour, but their efficiency in their work enables me to pay them at that rate. When we hire apprentices, with no experience, we start them at $12 per hour and increase their wages as they learn the trade.

RANDOM NOTES, RANDOM THOUGHTS

A vendor said to me that Michaels closing its Recollections stores is "another indicator that memory/paper crafting is hurting and on the decline curve." Is that true? Perhaps, but consider this: Michaels is now owned by private equity companies, Bain Capital and The Blackstone Group. The money behind Primedia, until last year the owners of Creating Keepsakes, Craftrends, and other industry magazines, was another private equity giant, KKR. About 10 years ago Primedia closed a woodworking magazine that was profitable, but not profitable enough.

MISCELLANEOUS NEWS

GIFT CARDS. Holiday gift-card sales will jump 25% to a record $35 billion in 2007, according to a study released by Archstone Consulting. "There's good news, bad news here," analyst Marshal Cohen of NPD Group told CNNMoney. "Fifty percent of Americans say they now think it's acceptable to give a gift card. It's a great gift, but it doesn't promote an impulse purchase on the part of the gift buyer." Impulse purchases – the 'me-too' gifts – account for about 25% of holiday sales, Cohen said. "This year, it will be lower than that."

JOBS. A new study by the outplacement firm Challenger, Gray & Christmas indicates retailers will add fewer holiday employees fewest since the holiday season of 2001, reported the Ft. Worth Star Telegram. Lower sales expectations appear to be the cause. Retailers added 710,000+ temporary workers in each of the last three years. (Comment: Oh, great. Think what the customer service will be like for shoppers.)

COMPANY FOR SALE. The company designs and distributes scrapbook products. It has been able to expand its distribution by selling products into several big-box retailers, whereas they historically only sold products to independents. 2007 revenues are projected at $5.1MM and EBITDA at $1.3MM. The owners want the company to become a major industry player and are interested in partnering with a buyer who will allow them to take most of the current value of the company off of the table while keeping a significant amount of up-side worth through retained equity, a license agreement, or other earn-out options. For more, call Chad Burnett at IndustryPro, Merger/Acquisition Intermediaries, at 801-838-7708 or email cburnett@zirkle.com.

IMPORTS. Wal-Mart has started rolling back toy prices for the holidays, two weeks earlier than last year, then announced price cuts on another 15,000 items, Bloomberg News and Reuters reported ... Ed Schmuls, CEO of FAO Schwarz, told the Associated Press that there's no "abandonment of Chinese-manufactured toys. A lot of people are looking ... but we are not seeing a correlation between where toys are made and their sales."

IMPORTS. China's trade surplus jumped 56% in September to $23.9 billion, adding pressure on the central bank to increase interest rates and let the yuan strengthen faster to prevent the economy from overheating, Bloomberg News reported. The yuan has gained about 10% versus the dollar since the end of a fixed exchange rate in July 2005. ... Reuters reported the crowds at the Canton Trade Fair, China's biggest export trade show, were as large as ever.

MARTHA. MSN.Money published an article pointing out that the price of the stock in Martha Stewart Omnimedia has fallen 40% since December, viewership of her tv series is down 30% since the series was relaunched in September 2005 after her release from prison, and sales of her product lines in Kmart are down 22%. The article did not mention her craft line.

SHOWS. Booths are still available for the Orlando Needlework show Nov. 16-17 in Orlando. The show is being held simultaneously with the Bead & Art Glass Fest and Memories Scrapbooking Expo™ and attendees will have access to the three events. Visit www.OrlandoNeedleworkShow.com.

SEMINAR. CHA is sponsoring "Exhibiting With Excellence: Tradeshow Operations 101," a seminar designed to help exhibiting companies maximize the full profit potential and business development opportunities trade shows offer. The event is Nov. 8-9 at the Anaheim Marriott in California. Admission is $125 for CHA members, which includes dinner Nov. 8 and breakfast and lunch Nov. 9. For more info or to register, visit www.chashow.org and click on the Exhibitor Education Registration link under the Exhibitor Information tab.

AWARD. The U. S. Dept. of Energy gave Duncan its DOE Energy Saver Award. Duncan was one of 170 companies receiving the award; 700+ applied for it. To read what Duncan does to save energy, click on "Vinny Da Vendor" in the left-hand column, then "Help People – And the World" in the right-hand column.

PEOPLE. Janlynn named Cathy Dyjak as National Sales Manager ... Aspire Media, corporate parent of Interweave Press, hired Eric Shanfelt as Exec VP of eMedia. He's the former Sr. VP of eMedia for Penton Media ... Gail Czech of The Creative Network was elected to serve a two-year term as President of the National Assn. of Marketing Recruiters Network.

JOB OPENINGS. C&T Publishing is seeking a Sales Manager, responsible for managing its sales efforts across all sales channels, including special sales. Duties include supervising an established sales team; recruiting; creating sales campaigns; setting sales targets and tracking results; and opening new sales channels. Industry experience preferred. For more, email janetL@ctpub.com or call 800-284-1114, ext. 214. ... An East Coast adhesives manufacturer is looking for rep groups. For more info, in confidence, email Mike Hartnett at mike@clnonline.com.

CONTESTS. Plaid's FolkArt® HD™ Painting Contest drew 662 entries from members of the Society of Decorative Painters. More than 2,000 paint kits and canvases were mailed to SDP members earlier this summer, meaning the contest had a 33% participation rate. The contest is one of many grassroots activities Plaid used to introduce FolkArt® HD™ paint. Priscilla Hauser led a panel of six judges who awarded hundreds of dollars in prize money. Stacia Alexander won the $500 Grand Prize, and Helen Fortner won the People's Choice Award.

RATINGS. Standard & Poor's Rating Services upgraded its rating of Jo-Ann's to Positive from Stable due to its improved operating performance under new management, but it re-affirmed its corporate credit rating at B-. "We would raise the rating if better operating trends continue and cause credit metrics to improve," S&P's Credit Analyst Charles Pinson-Rose told the Associated Press ... KeyBanc Capital Markets upgraded Jo-Ann's stock to Buy.

CLN STOCK INDEX. A.C. Moore: $15.40, down $0.36 ... Jo-Ann's: $19.17, down $1.93 ... Wal-Mart: $44.98, up $1.33 ... CLN Index: 80.46, down 1.2% ... Dow Jones: 13,522.02, down 2.7%. (Note: All changes in price are since 9/28 and are exclusive of dividends.)

CONDOLENCES. To the family of Bob Paetow, a very popular general merchandise manager for Ben Franklin Stores in the 80's and 90's. His visitation is being held today, Monday at Ryan Funeral Home in Homewood, Illinois: www.ryansfuneralhome.com/FuneralHome from 4:00 to 9:00 pm. Bob's funeral service is at 11:00 am on Tues., Oct. 23 at St. Margaret's of Scotland in Chicago where Bob was a teacher: www.stmargaretofscotland.com/welcome.htm. There will also be a visitation at the church starting at 10:00 AM on Tuesday. Friends can go to the funeral home website to sign Bob's guest book and upload photos.

WORKSHOP. The most unique online workshop CLN has heard of is "Wellness Journey" at Big Picture Scrapbooking. Lisa Cohen will discuss fitness programs, healthy food, staying motivated, reducing stress, and scrapbooking your progress. Visit www.bigpicturescrapbooking.com/wellness.php.

CRAFTS. Kathy Cano Murillo's (The Crafty Chica) new webisode series, Crafting With the Chica, has debuted on LifetimeTV.com. There is a new, four-minute project every Wednesday. Twelve have been filmed and Lifetime liked them so much they ordered eight more for the holiday season. To watch the first video, visit http://tinyurl.com/2drkul.

BEADS. The 7th series of Beads Baubles and Jewelry uplinks Nov. 7 to PBS stations. The series is produced by KS Inc. Productions, and sponsored by Kalmbach, BeadStyle, Bead&Button, Beadalon, Shipwreck Beads, Pure Allure "Crystal Innovations," Pro, and American Art Clay. Visit www.beadsbaublesandjewels.com.

VIDEOS. All of Katie Hacker's three-minute "Beading Lessons" from the PBS series, Beads, Baubles & Jewels are available online at the new Beadalon website, www.beadalon.com.

KNITTING. Knitting Out Loud released the audiobook of the NY Times bestseller, Stitch ‘n Bitch: The Knitter’s Handbook by Debbie Stoller, read by the author. It's 3 CDs – 3 hours 19 minutes – for $19.95. Knitting Out Loud’s previous releases are America Knits by Melanie Falick and Knitting Memories edited by Lela Nargi. The audiobooks are available online from www.knittingoutloud.com and www.interweave.com/books (which features audio clips), and yarn shops and book stores.

PAINTING. Martin/F. Weber released two new Suscn Scheewe Art Workshop DVD Series (11A and 11B). Each series contains three discs with 13 complete painting projects from Sue's Scheewe Art Workshop tv series on PBS.

BLOG. Liesl Gibson's blog, www.disdressed.blogspot.com, is an informative, lighthearted blog with sewing lessons and ideas, techniques, and new products. Liesl is a former apparel designer and a teacher at Purl Patchwork in Soho in NYC. Her new backpack pattern will be featured in the Moda booth at Quilt Market where she will also launch a new line of children's patterns, Oliver and S.

To see the latest listings from the only personnel recruitment firm specializing in our industry, click on Jobs in the left-hand column or click HERE.

... You get winded from knocking on the door.

... You have to have another kid chew the candy for you.

... You ask for high fiber candy only.

... When someone drops a candy bar in your bag, you lose your balance and fall over.

... People say: "Great Boris Karloff Mask," and you're not wearing a mask.

... When the door opens you yell, "Trick or" and can't remember the rest.

... By the end of the night, you have a bag full of restraining orders.

... You have to carefully choose a costume that won't dislodge your hairpiece.

... You're the only Power Ranger in the neighborhood with a walker.

... You keep having to go home to use the bathroom.

REMINDERS

1. If you want a hard-copy of this issue, click on "Printer Friendly version."

2. If your company is a paid subscriber, everyone in the main office is welcome to register, free. Just click on "Work for a paid subscriber? Click Here to register" (center column, near the top).

3. If you ever have trouble with your password, click on "Trouble with your password" in the right-hand column of the main page. The computer will then email the correct information to you.

4. Creative Leisure News is normally published the first and third Mondays of each month, but because I'll be attending a CHA board meeting, your next issue will be Monday, November 5.

xxx

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