Michaels said it has seen a surge in customer interest in fabrics, sewing and yarn following its competitor’s demise.
Michaels, the craft retailer, has recently acquired the intellectual property and private label brands of Joann Inc. This move comes after Joann, a competing fabric and craft company that filed for bankruptcy in January, closed all of its 800+ stores in the U.S.
As part of the acquisition, Michaels now has the rights to develop Joann’s Big Twist yarn brand line. The decision to acquire these assets was driven by Michaels observing an increase in customer interest in fabrics, sewing, and yarn since Joann’s closure.
David Boone, the CEO of Michaels, expressed his enthusiasm about the acquisition in a news release. “We’re excited to welcome Joann customers to our creative community and are dedicated to providing them with the selection, value, and inspiration they seek at Michaels,” Boone announced.
Joann filed for Chapter 11 bankruptcy protection in January for the second time in less than a year. The retailer had completed a previous restructuring in April 2024 that saw it delisted from the stock exchange and become a private company.
In its January filing, Joann said it was seeking court approval to sell “substantially all of its assets.” The company cited “significant and lasting challenges in the retail environment” coupled with its financial position and constrained inventory levels.
Joann’s website now automatically redirects to the Michaels web page. The store has created a dedicated landing page to help former Joann customers navigate their new shopping experience, featuring curated product assortments and updates on new arrivals.
“This acquisition allows us to better serve both new and existing customers, respond to rising demand across categories and build on our momentum as the destination for creating and celebrating in North America,” Boone said.
Michaels is rapidly expanding its fabric, sewing and yarn assortments, adding more than 600 products across new and existing brands. The company said fabric searches on its website have increased 77% over the past year, while sewing-related searches jumped 39%.
The Irving, Texas-based retailer has increased fabric assortments in more than 680 stores and plans to expand to 280 additional locations this year. Michaels now offers more than 10,000 fabric options online.
The company said it will continue developing Joann’s Big Twist brand family, including Big Twist Value Plus, Big Twist Twinkle, Big Twist Posh and Big Twist Baby Bear yarns. Those products will be available in Michaels stores and online later this year.
Michaels operates more than 1,300 stores across 49 states and Canada. The company also owns Artistree, a manufacturer of custom and specialty framing merchandise.
