NEW YORK (AP) — The crafting world is witnessing a significant shift as labels from the now-defunct fabrics retailer Joann find a new home at Michaels. The Michaels Companies confirmed on Thursday that it has successfully completed the acquisition of Joann's intellectual property, including its private label brands, at a time when the Texas-based arts and crafts giant is looking to expand its offerings in fabric, sewing, and yarn.
Michaels' CEO David Boone expressed enthusiasm about the acquisition, stating, “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.” He emphasized that this deal enables the company to better cater to the growing demand from both new and existing customers.
The financial specifics of the acquisition were not disclosed in the announcement, and the Associated Press reached out to Michaels for further details. Joann, which started as a single storefront in Ohio in 1943, evolved into a renowned destination for sewers, quilters, knitters, and crafters over the decades. Unfortunately, in recent years, Joann faced increasing operational challenges that pointed to sluggish consumer demand, inventory shortages, and growing competition.
In February, Joann announced its decision to cease operations, shortly after filing for Chapter 11 bankruptcy protection for the second time within a single year. At that time, the company revealed that a financial services entity, GA Group, along with Joann’s term lenders, would acquire the majority of its assets and oversee going-out-of-business sales at all locations.
Michaels highlighted that the acquisition includes well-known brands such as “Big Twist,” which had become a staple in Joann's inventory over the years. These labels will now be integrated into Michaels’ product portfolio, with availability in stores and online expected later this year. To facilitate the transition for former Joann customers, Michaels has created a dedicated landing page on its website.
In conjunction with expanding its offerings, Michaels announced plans to introduce over 600 new products from both new and existing brands. This expansion will include a wider selection of quilting supplies, fabrics, specialty threads, sewing machines, and more, signaling the company's commitment to enhancing its fabric and crafting segments.
Established in 1973, Michaels currently operates approximately 1,300 stores across 49 U.S. states and Canada. The company’s parent organization also owns Artistree, which manufactures framing merchandise. This strategic acquisition not only enhances Michaels’ inventory but also represents a pivotal evolution in the crafting industry amidst shifting consumer behaviors.
