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The Knit continues to hang on to its narrow niche for dear life. "This place is like a giant yarn ball that a kitten got into," notes one employee. "There is no grandma sitting with a neat basket of yarn, like our poster shows. Grandma hired a bunch of underpaid, overworked people a long time ago to do her knitting, and now everything is unraveled." In other words, it's back to business as usual at the Knitting Factory. "It's been an extremely humbling learning experience for me," says Dorf. "I feel lucky." —Josh Goldfein

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