When Robert Kaufman Fabrics was facing financial distress earlier this year, owner and CEO Ken Kaufman reached out to one of the largest buyers of quilting fabric in the industry for help: Missouri Star Quilt Company.
Now, corporate records show that members of the Doan family and the Chief Financial Officer of Missouri Star make up the majority of the board of Robert Kaufman Fabrics.
“Due to various economic pressures Robert Kaufman found itself at risk,” Kaufman explained in an email to Craft Industry Alliance late last week. “The demise of the company would have had a very negative impact on the industry and, of course, our customers like Missouri Star. We explained the situation to Missouri Star leadership and can only express much gratitude for the manner in which they responded.”
In an email sent to several industry partners and shared with Craft Industry Alliance, Missouri Star CEO Jeff Martin wrote that Robert Kaufman needed recapitalization and Missouri Star was able to help them “secure new investment that has stabilized their business through a combination of private financing and new lines of credit.”
The private financing came from Sarah Galbraith and Alan Doan, both of whom are children of Jenny and Ron Doan and are among the founders of Missouri Star. Galbraith and Alan Doan now have two of the four board seats of Robert Kaufman.
Nicole Strain, who has served as the Chief Financial Officer for Missouri Star since 2022, is now also the Chief Financial Officer of Robert Kaufman and sits on its board.
Of the four board members currently listed for the company with the State of California, three are associated with Missouri Star. The fourth is Ken Kaufman.
Martin said in the email that Robert Kaufman remains an independent entity from Missouri Star with its own leadership and operations team.
Company history
Ken Kaufman is the third generation of his family to run Robert Kaufman Fabrics which was founded by his grandfather, Robert Kaufman, in 1942. After pivoting from fashion fabrics to quilting in the 1980s, the company became one of the leading fabric converters serving the quilting industry.
Perhaps best known for its line of Kona solids which are available at mass-market retailers and independent shops worldwide, Robert Kaufman also produces batiks, yarn dyes, and prints, and works with several well-known industry designers including Carolyn Freidlander, Anna Graham, and Jennifer Sampou among many others.
The industry reacts
Although these financial shifts were made in mid-May of this year, there was no press release or public announcement. News began to spread when the industry gathered at Quilt Market in Houston at the end of October. Since then, Martin, has been sharing the news with some fabric companies during one-on-one meetings and through email.
So far, the reaction to the news has been mixed among fellow fabric companies and the quilt shops they supply.
Some fabric companies we’ve spoken with expressed hesitation about continuing to sell to Missouri Star considering that the company is now intertwined with a competitor. At the same time, Missouri Star is one of the largest buyers of quilting fabric in the world.
“For now, we’ll wait and see,” said an executive at one fabric company we spoke with. “Like a flashing yellow light. Proceed with caution.”
Cindy Cloward, an owner and the Chief Design Officer at Riley Blake Designs, said, “Regarding the merger of one of the biggest manufacturers with one of the largest retailers, from our perspective, this is a very concerning development for the industry. We believe this combination creates imbalances and isn’t healthy for the long-term growth of our industry.”
Kaufman sees it otherwise. “The industry should be celebrating that a company and fixture in the industry for over 80 years has been able to pull through a difficult time and is confidently moving forward to right its ship,” he said.
Quilt shop owners also have had mixed reactions. Some perceive Missouri Star as a significant competitor to small independent brick-and-mortars and expressed concern about buying Robert Kaufman fabrics now because they don’t want their dollars to support Missouri Star. Others are less worried.
Cheryl Dolloff, owner of Colchester Mills Fabrics and Quilting in Colchester, Connecticut, heard about Missouri’s Star’s new involvement with Robert Kaufman in a Facebook group of quilt shop owners. She carries Robert Kaufman Kona cottons in black and white as well as a selection of the company’s batiks and prints. “I can’t lose sleep about things I can’t change,” Dolloff said. “I’ll keep an eye on how the relationship seems over time.”
Amelia Freeman-Lynde, owner of Freeman’s Creative in Durham, North Carolina, isn’t worried. “I’m not deeply concerned about Missouri Star having an ownership stake. I don’t really think of them as a competitor as a brick-and-mortar. I believe they are heavily quilt-focused and pretty traditional so I don’t think it would affect my ordering.”
Dolloff said she’ll be watching to see if Robert Kaufman fabrics begin to get preferential treatment in Missouri Star’s well-publicized promotions called The Quilter’s Daily Deal. If they do, she says she would reevaluate her buying decisions. And if Missouri Star were, in the future, to rebrand the company as “Robert Kaufman by Missouri Star” Dolloff said that would be going too far. “At that point, I’d be done. I am not going to support their bottom line. I wouldn’t go out of business if I didn’t carry Robert Kaufman. There are plenty of fabrics out there.”
Fabric companies are also evaluating the future of their relationship with Missouri Star. “We have enjoyed a long-standing relationship with MSQC and we’ve personally reached out to express and discuss our concerns,” said Cloward. “As we continue to evaluate the situation, we’re making decisions that we believe are in the best interest of Riley Blake and the broader industry. “
Abby Glassenberg
Co-founder
Abby co-founded Craft Industry Alliance and now serves as its president. She’s a sewing pattern designer, teacher, and journalist. She’s dedicated to creating an outstanding trade association for the crafts industry. Abby lives in Wellesley, Massachusetts.
In the true spirit of reporting…
I am curious WHY didn’t you interview
the large retailers in the Industry?
The direct competitors to Missouri Star.
Missouri Star became a competitor instead of a client to Fabric vendors when they made the choice to purchase Kauffman fabrics. They now have access and visibility of proprietary information of their competition that purchased from Robert Kauffman. Pricing and quantities .. separate entities do not have the same CFO. It also gives them the ability to negotiate pricing with the mills and undercut their competitors .
That’s interesting. Frankly, I didn’t think of it. So Hancocks and Fat Quarter Shop? Or the mass market retailers?
I would be interested in seeing you interview Kimberly and what her take on this is.
I’d also like to know what the Sew Yeah crew thinks. I consider them a large competitor to MSQC. Perhaps also Shabby Fabrics, Hawthorne Fabrics, and like someone else mentioned, Fat Quarter Shop. While I’m not sure what the wholesale order requirements are/were for RK, I’d be curious to see if those change. Perhaps a higher first order requirement and yearly purchase requirement? Which could push out smaller shops like myself.
I too would like to hear interviews from other large competitors (Shabby Fabrics, Fat Quarter, Sew Yeah, ect) and what their views are on how this shift will impact their purchasing decisions. I am a huge fan of Robert Kaufman’s Christmas & winter batiks that have gold and silver metallic accents and now I’m concerned that my sourcing pool will become limited.
Please reach out and invite them to comment here.
This is a great point and also their access to mills since RK owns mills which means Missouri star now does also. This means they can now create and sell direct to consumer which cuts out all middle men and they can now sell even
Are you sure that Robert Kaufman owns mills? That’s not my understanding.
As a major buyer of Kona solids, I met Ken and toured Kaufman’s facility in 2022, well before this merger took place. At that time the quality control department told me Kaufman contracted with overseas mills, and did not own any. Kaufman Fabrics checks colors against their standards once shipments arrive and occasionally had to reject shades, hence long backorders on some fabrics. I seriously doubt they recently bought mills in the multiple countries they import (convert) fabric from.
That is also my understanding. I’ve not heard of a fabric converter that owns its own mill.
RK does not own any overseas mills. I’m a former employee.
Yeah, my thoughts exactly, Abby! Because that is NOT what I have found in research: They do not own they source from over seas mills.
Great reporting, Abby! Very insightful as always.
This is SLOPPY reporting at best. Sensational headline that has been otherwise disputed by Kaufman themselves as not true as MSQC doesn’t own Kaufman. Two family members invested independently. Abby’s bias is showing again.
I totally agree, inflammatory click bait headline. Unprofessional and never a good thing. Takes me back to the Nerida Hansen glowing interview while she was going bankrupt with Patternfield and no updates here except for reader’s ticked off comments, as they were losing money with her. A million dollars worth.
Al Doan and Sara Doan Galbraith are majority owners of Robert Kauffman fabrics. They both sit on both boards -Missouri Star and Robert Kauffman fabrics.
Nicole Strain is the CFO for both companies. The purchase was made in April /May of 2024 and neither Missouri Star or Kauffman told their employees. WHY?
The news broke at Quilt market in Houston . Their employees were so upset and hurt. WHY the secrecy of this acquisition ?
I completely validate WHY a fabric designer and manufacturer would not want to sell to a competitor.
There are concerns on pricing and many other things.
Communication is key in understanding each side.
I’d like to see some followup reporting with interviews from other larger quilt shops. What about some views from other manufacturers such as Moda, Art Gallery, etc.
There are some definitely unethical aspects to this with the CFO being both an employee of MSQ and board member of Kaufman. Not to mention the aspect of MSQ having access to Kaufman’s client info.
Please keep in mind that not everyone wants to speak on the record.
Hey Abby!
This is Teancum from Sew Yeah Quilting. I agree with the sentiments being expressed and acknowledge that there are many unknowns in this situation. However, I believe it would be valuable to delve deeper into this matter.
We’re always open to a call or interview to share our perspective, and I think many of the larger companies in this space would be as well. Additionally, it might be worthwhile to reach out to some of the manufacturers who have decided to stop selling to MSQC, as well as those who have chosen to continue their partnerships. Understanding the reasoning behind these decisions could provide valuable insights.
That said, I want to emphasize how grateful we are for the contributions MSQC has made to this industry. Their work has significantly impacted the quilting community, and the knowledge they share with countless people each month on YouTube is truly commendable.
PS Thanks for all the hard work you do on keeping everyone up to date on things!!!
Thank you, I’ll reach out.
Please keep in mind also that not everyone is interested in speaking on the record.
I completely agree with you Teancum on the strides MSQC made in our industry. They essentially paved the way for sewing on social media. I learned SO many things from Jenny’s videos and honestly, without her, I wouldn’t be where I am today! I now have my own quilting business making tshirt quilts, longarming for clients, and selling fabric and patterns. And it all happened because I posted a tutorial video showing how to make collage style tshirt quilts. I never would have considered making a video in the first place if that hadn’t also been the way I learned, from Jenny! Ha! I truly hope this merger of theirs is positive and doesn’t have a negative affect on anything. But, only time will tell.
Just to clarify, Robert Kaufman sent out a letter to customers today (12/2/24) confirming they are NOT owned by MSQC.
I personally am not a fan of MSQC I took issue with a few things and customer service refused my call and wouldn’t call back and a few other things. I am just frustrated that this will limit my choices as a fan of the wide selection of Kona colors. Well I don’t know.
Try the Riley Blake Confetti Cottons. IMHO they are much better quality than the Kona. They have increased the SKU count to over 300 colors.
Years ago I read an article that described how customers flock to a new quilt shop, while they’ve never stepped foot in an existing quilt shop in the same vacinity. The author claimed that Newbies felt safer in a new shop, and feared being found “ignorant & inept” in an established shop, full of “experts”.
The author explained, as Newbies become Confident Beginners, they seek out new venues, discover they love the variety and expertise found in older, more established shops.
I realized this was all quite true in my own experience!
Missouri Star has created more Newbies than anyone else. Thank you Jenny and your family! I have many good customers who started making quilts by watching Jenny on video. 😉
Do I consider them a “competitor”? Yes. Do I admire their operation? Yes.
Does my shop, my staff and my inventory fill a need in my community and the larger community of makers anywhere, yes!
If you stop selling what customers want, they’ll notice. So, I’ll use caution when deciding to eliminate something that may have been promoted by my “competitor”.
I would be interested in knowing how a “fourth generation” textile executive, Scott Fortunoff, sees this development from his point of view.
Scott works tirelessly (as does Missouri Star) to engage new and keep existing customers enthused in our industry.
If I am doing my math right, Scott’s family had already been in the textile industry 10 years when the first Robert Kaufman started his business. Did Scott’s Great-Grandfather’s business notice? They sold much the same product in those days. Both companies have survived many years.
Over the 40 years I’ve owned a fabric store, I’ve carried lots of Robert Kaufman fabric (as well as all the Jaftex companies). I carry a large mix of fabric from a large pool of vendors. I still love finding new ones. I depend on my secure “old” ones for quality and reordering reliability.
I would be much more worried for my own business if Robert Kaufman Co. was closing due to unsolvable financial problems. I am glad to hear they secured more financing.
Wouldn’t that be a sign of bad times that would certainly affect me, a much smaller fish!
I am encouraged when investors, like the Doan family, with many options, have chosen to further invest in the same industry I’m invested in.
I have many concerns about the future due mainly to the price of cotton and the possible additional expense of new tariffs.
I watch and listen carefully.
Thanks for the informative article and the sleuthing that went into it! We now live in an age where corporations have more rights than individuals and big business gets even bigger. Crafting is not exempt from Capitalism or the upcoming Broligarchy that feeds it. At the end of the day, we can spend our money with the little guys or the big guys – or both. I don’t see why people should be judged based on where they spend their money or how they structure their business. This article provided fair information for us to make our own decisions and I appreciate that.
As far as ownership goes: Holding 3 of 4 board seats is certainly “owned” in principle if not in legal stature. ( ͡~ ͜ʖ ͡°)
Thank you, Abby. Besides enabling Missouri Star to have even bigger margins than the rest of us, my biggest fear is that they will drop all the non-quilting fabrics Robert Kaufman produces (or converts). My customers love their knits, corduroys, linens, and canvases.
I just learned of this development yesterday from a quilt shop owner. After hearing of all the problems she’s had in ordering from Kaufman Fabrics I wasn’t surprised to hear they’ve had financial problems. It sounds like their business needs help. Hopefully a successful business can give guidance to a business that needs help.
There are many thoughtful and helpful comments on this article…..and some that are not helpful. I think Abby’s first reply summed it up – she simply didn’t think of those other angles to this story. That is understandable and forgivable. Missouri Star has a perception of being a small family-owned business, but it is well beyond that. It is actually a case study for business schools. It’s clear that Missouri Star has seen opportunities in the quilting industry and related craft industries that it is moving to pursue. I agree with another commenter that it would be interesting to hear from Scott Fortunoff and Fat Quarter Shop, and any others, should Abby choose to do a follow-up story. Thank you, Abby for bringing this to light. Please do keep reporting on the business side of this industry.