Why did Simplicity go out of business?

Simplicity, a well-known and beloved brand in the sewing and crafting industry, announced its closure in 2018 after 90 years in business. This news came as a shock to many loyal customers and fans of the brand, leaving them wondering why such a long-standing and successful company would go out of business. In this article, we will explore the reasons behind Simplicity’s downfall and the factors that led to its closure.

1. Changing Market Trends

One of the main reasons for Simplicity’s decline was the changing market trends in the sewing and crafting industry. With the rise of fast fashion and ready-to-wear clothing, the demand for sewing patterns and DIY projects decreased significantly. Consumers were more interested in purchasing cheap, mass-produced clothing rather than investing time and effort into making their own garments. This shift in consumer behavior greatly affected Simplicity’s sales and profitability.

2. Competition from Online Retailers

The rise of online retailers, such as Amazon and Etsy, also played a significant role in Simplicity’s downfall. These platforms offered a wide variety of sewing patterns and supplies at competitive prices, making it difficult for Simplicity to compete. Additionally, online retailers provided convenience and ease of purchase, which appealed to modern consumers. As a result, Simplicity’s sales declined, and the company struggled to keep up with the changing retail landscape.

3. Lack of Innovation

Another factor that contributed to Simplicity’s closure was its failure to innovate and adapt to the changing market. While other sewing and crafting brands were introducing new and trendy patterns, Simplicity stuck to its traditional designs and failed to keep up with the latest fashion trends. This lack of innovation made the brand seem outdated and unappealing to younger consumers, who were the primary target market for sewing and crafting products.

4. High Production Costs

Simplicity’s closure can also be attributed to its high production costs. As a company that focused on producing high-quality patterns and supplies, Simplicity had to maintain a certain level of production standards, which came at a cost. With the decline in sales and revenue, the company struggled to cover these expenses, leading to financial difficulties and ultimately, its closure.

5. Mismanagement and Debt

In addition to the above factors, Simplicity’s closure can also be attributed to mismanagement and debt. In 2007, the company was acquired by Wilton Brands, a private equity firm, which loaded Simplicity with debt. This debt burden, combined with the declining sales and profitability, put a strain on the company’s finances and made it difficult for them to stay afloat.

In conclusion, Simplicity’s closure was a result of a combination of factors, including changing market trends, competition from online retailers, lack of innovation, high production costs, and mismanagement. While the brand had a loyal customer base and a rich history, it failed to adapt to the changing market and ultimately could not sustain its business. However, Simplicity’s legacy and impact on the sewing and crafting industry will always be remembered and cherished by its devoted fans.