Michaels acquires Joann fabrics IP: Will it take over former stores too?

The Michaels Companies, a craft retail chain, has acquired Joann, a beloved fabrics retailer that recently closed all its stores after filing for bankruptcy. The sale includes its intellectual property, private label brands, and merchandise. Michaels has seen a 77% increase in searches for "fabric" on its website since Joann stores began closing. To cater to Joann customers, Michaels has increased fabric merchandise in 680 stores and plans to add over 600 products, including a 25% increase in yarn merchandise. The acquisition allows Michaels to serve new and existing customers, respond to rising demand, and build on its momentum as a destination for creating and celebrating in North America. Michaels has been privately held since 2021 and has long competed with Joann in merchandise categories and services. Joann filed for Chapter 11 bankruptcy protection in January 2025 and closed its last remaining stores recently. Michaels has taken over three leases for former Joann stores, but its plans for those leases are unclear. The acquisition will enable Michaels to expand its merchandise offerings, including fabric, yarn, sewing machines, and other sewing materials. Michaels will continue to adjust its merchandise to absorb its new customers.