Michaels said it has seen a surge in customer interest in fabrics, sewing and yarn following its competitor’s demise.
IRVING, Texas — Craft retailer Michaels announced Thursday it has acquired the intellectual property and private label brands of Joann Inc., the competing fabric and craft company that filed for bankruptcy in January and has since closed all of its more than 800 U.S. stores.
The acquisition includes development rights to Joann’s Big Twist yarn brand line and comes as Michaels has seen a surge in customer interest in fabrics, sewing and yarn following its competitor’s demise.
“We’re honored to have the opportunity to welcome Joann customers into our creative community and are committed to delivering the selection, value and inspiration they are looking for at Michaels,” said David Boone, chief executive officer at Michaels, in a news release announcing the sale.
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.