Saturday, April 26, 2008

"We're in a slow down"

The title of this post is courtesy of President Bush. I reckon "slow down" is a technical economic term.

Here's what I know: milk and gas are now almost the same price. My grocery bill has tripled and I'm buying less. Sam's Club and Costco are rationing rice. But the other day I ran across an even bigger concern:

http://www.dmc.fr/mjRS/3/doc/Communiques/en/press_release_24_april_2008.pdf

I can only hope that DMC is just taking a moment and restructuring their company and not going completely out of business. A friend pointed out that the store that shall not be named's no longer stocking of DMC might possibly have had a huge impact on the sales of DMC in the USA.

I don't know anyone that has stopped buying DMC because it's no longer available at the store who shall not be named but I do know that for me, instead of buying 10-20 skeins every time I walked in the door, because I always have a list in my purse, my purchases of DMC are now limited to trips to AC Moore or JoAnn's and those occur less frequently than my trips to the store who shall not be named and I still only spend my allotted DMC amount on each trip which is usually $5. So where at one time I was spending $5-10 a week on DMC(because it's really easy to sneak in a few extra dollars of DMC in with the groceries) because really I'm always kitting something up, I'm down to about $5 a week, if that, because DMC is 35¢ a skein at AC Moore and JoAnn's. So if I stay within my DMC budget I'm not only spending less per month on DMC but I'm also buying fewer skeins of floss. So even as dedicated a DMC user as me, someone who sees it as a weekly purchase if possible, my purchases are down. Not so much from a financial aspect but as an accessibility issue.

I do know that I am going to start stocking up on DMC like never before. I have several projects that I want to kit up so instead of waiting until I'm almost ready to start them, I will be hoarding up DMC just in case.

DMC is one of those constants in my life. It has never once crossed my mind that there might be a world without DMC. Are we going to be stuck using off brand floss, purchased in those multiskein packages? Talk about worst nightmare. If I can't afford gas or groceries, I always thought I'd at least be able to stitch-it's also one of the reasons I have never let go of aida, it's affordable, I don't want to be miserable stitching so the luxury of being a fabric snob is one I have never allowed myself, I can always afford aida(yes, I love linen, really good linen but aida, it's my friend). But the idea that stitching would always be an affordable hobby even in hard times, that's looking bleak now. My blame may be misplaced but now as I see it there's another reason to dislike the store who shall not be named. Will my town ever get their own Target so it's not the only game in town?

Let the DMC hoarding begin......

14 comments:

Janice said...

Melissa,

If you are like me, then you have enough things already kitted to last a lifetime! I'm going to take comfort in that.........and stockpile 3685 for my winter projects!!!!

Joanie said...

I have a full set of DMC but after reading your post, I think I am going to go out and start hoarding skeins too. I'll be kitting up a lot of Mary Garry and Prairie Schooler...

Kendra said...

Don't know how accurate it is, but I read on another blog that DMC is going to take the focus off of their other divisions that aren't doing as well and focus more on the Creative World division. I hope that is indeed the truth...or at least what they mean when it comes up that they're restructuring or what not.

If DMC does go down/under, there will be a *huge* trickle down effect, seeing as how several of the hand-dyed floss companies use DMC as their base floss.

Nic said...

I know here in the UK, it is harder to find craft shops that stock stitching stuff - it all seems to be papercrafts!

I do wonder how DMC can make a profit when they sell floss in the US for 35 cents - here, the RRP is 65 pence - or $1.30! Perhaps the restructuring will mean a price rise for you, but I guess that's better than no floss!

Fortunately, I still class stitching as an affordable hobby - with new paperbacks running at £6.99 and cinema tickets nearly the same, I can buy a chart and fabby for the same amount :o)

Cindy said...

I will admit that I have not purchased any DMC since a certain store stopped carrying it. Then again, I do have a full set and haven't been stitching as much lately. In any case, the closest place to buy it is now 25 miles away. I am not going to make a trip just to buy floss, so it would have to be part of a well planned mission - instead of being able to throw it in with the rest of the consumable purchases.

DMC really is one of the stitching staples, and I really hope that they are able to rebound from this.

Stitcher said...

The RRP here in the Uk is now up to 72p, that's $1.40.

Sue said...

Oh my! What a mysterious news brief. The universe would definitely shift without DMC. Let's hope they will always be around.

Medieval Needle said...

Perhaps if we all went out and spent our economic stimulus bonus on DMC we could save the company single-handed.

I wonder if my sweet DH would allow me to spend $1,200 on DMC. Probably not.

XmaryX said...

As Charlie Brown would say - "AAARRRRGGGG!!!"
I've been annoyed by food prices (do I really have to buy 2 bags of flour now and freeze to make Christmas cookies or what??) and furious at gas prices, but if there's no DMC, how can I deal with the stress of rising
prices? Oh the pain!

Joanie said...

Read it and weep, ladies...

http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSL2992875220080429

Joanie said...

Better yet, go to my blog, I've posted the link there. It doesn't sound good for DMC...

http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSL2992875220080429

Jeanne said...

I think I'm going to stock up on DMC as well to supplement my current collection. I think DMC is going to continue selling but is probaby moving their manufacturing to Asia and closing down their France plant. Cheaper labor etc etc - we've heard it hundreds of times here in our own country. DH and I are fortunate in that he started working at home last fall and I was able to relocate my job to a site close to home last year. So I now commute 10 miles each way instead of 25. I also tleecommute a couple days of week so our gas expenses have actually gone down over the past year. I sympathize with those feeling the pinch though.

Ginger said...

Just FYI
Hugs,
Ginger


DMC PRESS RELEASE
APRIL 30, 2008



In recent days, there has been a significant amount of information in the form of press releases, media reports, etc. regarding financial difficulties and operational restructuring plans at the DMC corporate offices in France. Those activities and court filings within the legal system in France are directed towards seeking a formal resolution for two divisions within the DMC Corporation (Sportswear fabric and a small chain of retail stores found only in France) that are not related to the embroidery thread and craft activities, which remain the core business of the corporation.

In addition, the U.S. division of DMC operates as a separate legal and financial entity with its own financing, receivables, payables, etc, and as such, is not included in any legal filing or petitions to the courts that may occur in France.

We are financially secure and fully prepared to conduct business as usual here in the U.S.

DMC has been manufacturing needlework threads for 262 years and we remain committed to providing stitchers with the highest quality embroidery floss, specialty threads, needlework fabrics and other supplies they need to continue to enjoy the wonderful art of needlework. We look forward to continuing to serve all of our customers and loyal users of DMC products into the future.

Joseph D. McCabe
President/CEO
DMC, Inc.

Sharon said...

A few months back, I really stocked up on it when Walmart was doing away with the DMC threads. I am glad I did. You just never know.
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