In a significant move for the retail landscape, Michaels, one of the largest craft retailers in the United States, has successfully acquired the intellectual property and private label brands of Joann following the company’s second Chapter 11 bankruptcy filing in January 2025. Joann, once a key competitor in the fabric, sewing, and craft market, closed all 800 of its stores as part of its bankruptcy proceedings, marking the end of an era for the popular brand. Michaels’ acquisition comes at a time when it seeks to strengthen its position in the fabric, sewing, and yarn sectors while responding to rising consumer demand for craft supplies.
Joann, founded in 1943, has long been a staple in the craft community, offering a wide range of fabrics, sewing notions, and DIY supplies. However, the company faced ongoing challenges over the years, including declining sales and an erosion of market share to larger competitors like Michaels and Walmart. These struggles culminated in Joann’s second bankruptcy filing and its eventual liquidation of all stores. Despite its closure, the Joann brand still holds significant value, especially in the fabric and sewing segments, making its intellectual property an attractive acquisition for Michaels.
For Michaels, the acquisition provides a strategic opportunity to deepen its presence in the fabric and sewing market, which has experienced a resurgence in recent years. As part of the acquisition, Michaels plans to integrate Joann’s popular private label brands, including Big Twist yarn, into its offerings by late 2025. This move comes as Michaels has already rolled out over 600 new product items to further capture the growing interest in fabric and crafting supplies.
The timing of the acquisition aligns with a notable trend: a 77% increase in fabric-related searches on Michaels’ website. This surge in demand, driven by both hobbyists and professionals returning to sewing and crafting post-pandemic, has prompted Michaels to enhance its fabric offerings across more than 680 stores. Additionally, the retailer plans to expand this selection in an additional 280 locations by 2025, ensuring that customers nationwide have access to a wider range of fabric, sewing, and yarn products.
Michaels’ acquisition of Joann’s intellectual property not only bolsters the retailer’s market position but also addresses the shifting dynamics in the post-COVID retail environment. The retail industry as a whole has faced a wave of bankruptcies, with many companies unable to recover from the pandemic’s impact on their operations. Joann’s closure is a stark reminder of the challenges that many brands have faced, particularly those in sectors heavily impacted by changing consumer habits and the rise of online shopping. Michaels, however, seems to be capitalizing on the opportunities created by these disruptions, using the acquisition to strengthen its foothold in a competitive market.
To ensure a smooth transition for Joann customers, Michaels has created a dedicated online landing page to welcome those who once frequented Joann’s stores. The retailer is committed to making Joann’s popular products available to its loyal customer base, making it easier for them to access familiar items while exploring Michaels’ expanded range of fabric and crafting materials. This customer-focused approach highlights Michaels’ efforts to not only retain former Joann shoppers but also foster long-term relationships with a broader audience.
In light of the increasing consumer interest in crafting, sewing, and DIY projects, Michaels is well-positioned to benefit from the rise in demand for these products. The integration of Joann’s brand value, combined with Michaels’ expansive retail network and e-commerce capabilities, allows the company to offer an enhanced shopping experience to craft enthusiasts across the U.S. Michaels is also expected to continue innovating in the fabric and yarn market, further solidifying its status as a key player in the crafting industry.
As Michaels prepares to roll out its expanded fabric selections and integrate Joann’s brand offerings, it will be interesting to see how this acquisition impacts the broader retail and crafting industries. The company’s move highlights the importance of adaptability in a rapidly evolving retail environment and its ability to leverage acquisitions as a way to strengthen its position in the marketplace.