Is Hobby Lobby Going Out of Business? Debunking the Rumors and Uncovering the Facts

Have you recently scrolled through social media and seen alarming posts suggesting that Hobby Lobby, your go-to store for crafts and home decor, is on the brink of closure? You're not alone. Rumors about major retailers closing their doors can spread like wildfire, leaving loyal customers and employees wondering about the future. But when it comes to Hobby Lobby, what's truly happening behind the scenes?

This article will cut through the noise, directly addressing the widespread speculation and providing you with the factual, up-to-date information about Hobby Lobby's operational status and financial health. Prepare to separate fact from fiction and gain a clear understanding of where this beloved craft giant stands today.

The Persistent Rumors: Why Do They Keep Circulating?

The idea of a large, established retailer like Hobby Lobby closing down can be unsettling, especially for those who rely on it for their creative pursuits or employment. Rumors often gain traction from a mix of factors, including isolated incidents and the rapid spread of unverified information online.

One significant period that fueled widespread speculation was the COVID-19 pandemic. Like many businesses, Hobby Lobby temporarily closed all its stores in April 2020, furloughing employees. While these closures were temporary and a response to public health mandates, they led to concerns about the company's financial stability. Social media posts and unreliable news websites often conflate such temporary operational changes or isolated store adjustments with a complete company shutdown, creating a false narrative. The lack of official statements from the privately held company in response to every rumor can also leave a vacuum that misinformation fills.

The Truth Revealed: Hobby Lobby Is Not Closing Down

Let's get straight to the point: Hobby Lobby is not going out of business. Despite the persistent rumors, the arts and crafts retail giant continues to operate strongly, demonstrating consistent growth and expansion across the United States.

In fact, far from closing stores en masse, Hobby Lobby has been actively opening new locations. In late 2024 and throughout 2025, new stores have opened or are slated to open in various states, including New York, Delaware, South Carolina, New Jersey, Idaho, Texas, Kentucky, Utah, Indiana, Michigan, and Connecticut. This consistent expansion is a clear indicator of a healthy and growing business, not one in decline.

A Look at Hobby Lobby's Financial Health

As a privately owned company, Hobby Lobby does not publicly disclose its detailed financial reports in the same way a publicly traded company would. However, available data and market observations paint a picture of robust financial health.

• Significant Revenue: Hobby Lobby's annual revenue was estimated at $8 billion in 2024, showing consistent growth over previous years. Their online store, hobbylobby.com, alone generated $586 million in 2024, with a projected growth rate of 5-10% in 2025.
• No Long-Term Debt: The company is privately held and reportedly does not carry any long-term debt, which is a strong sign of financial stability.
• Employee Investment: Further demonstrating their stability and commitment, Hobby Lobby has consistently raised its minimum wage for employees. As of October 1, 2024, the minimum full-time hourly wage was increased to $19.25. This marks their 13th minimum wage increase in 15 years.

These figures and actions contradict any notion of the company struggling or preparing for closure.

Hobby Lobby's Enduring Business Model

What contributes to Hobby Lobby's continued success in a challenging retail landscape? Several factors play a role:

• Niche Market Dominance: Hobby Lobby specializes in arts, crafts, and home decor, offering a vast selection of over 70,000 items. This focus allows them to cater to a dedicated customer base of crafters and DIY enthusiasts.
• Strategic Expansion: The company often seeks to rent large, existing retail spaces, such as former supermarkets or department stores. This strategy allows them to save significantly on construction costs, contributing to their competitive advantage.
• Unique Operating Principles: Founded by David Green in 1972, Hobby Lobby remains a family-owned business deeply rooted in evangelical Protestant beliefs. This commitment is evident in their policy of closing all stores on Sundays, allowing employees time for rest, family, and worship. While sometimes controversial, these principles define their brand and resonate with a segment of their customer base.
• Benefiting from Competitor Shifts: With other craft retailers, such as Joann, facing store closures and bankruptcy, Hobby Lobby (along with Michaels) is well-positioned to absorb a significant portion of the displaced market share.

Conclusion: Crafting a Strong Future

The rumors suggesting Hobby Lobby is going out of business are simply not supported by the facts. From opening new locations across the country to maintaining a strong financial standing and investing in its employees, Hobby Lobby continues to be a formidable presence in the retail sector. The company's unique business model, vast product selection, and strategic expansion plans indicate a robust future, not an impending closure.

So, the next time you hear whispers about Hobby Lobby closing its doors, you can confidently dismiss them. The crafting aisles are here to stay!

What are your thoughts on Hobby Lobby's continued growth? Have you noticed new stores opening in your area? Share your experiences and insights in the comments below!

Frequently Asked Questions (FAQ)

Q1: Is Hobby Lobby publicly traded?

No, Hobby Lobby is a privately owned company. It is primarily owned by the Green family and its shares are not available for purchase on the stock market.

Q2: How many Hobby Lobby stores are there?

As of 2024, Hobby Lobby operates over 1,000 stores across 48 U.S. states, with no locations in Alaska or Hawaii.

Q3: Why did Hobby Lobby temporarily close stores during the pandemic?

Hobby Lobby, like many other retailers, temporarily closed all its stores in April 2020 in response to government mandates and the COVID-19 pandemic. These were temporary closures, and stores began reopening within a few months.

Q4: What is Hobby Lobby's minimum wage?

As of October 1, 2024, Hobby Lobby raised its minimum full-time hourly wage to $19.25. The company has a history of increasing its minimum wage, doing so 13 times in the last 15 years.