Craft retailer Michaels is making strategic moves to bolster its market position by acquiring the intellectual property and private label brands of Joann Inc., a rival that recently filed for bankruptcy and closed all of its U.S. locations. This acquisition includes the rights to Joann’s popular Big Twist yarn brand, coinciding with an increased customer interest in fabrics, sewing, and yarn—a trend that has become more pronounced following Joann’s exit from the market.
David Boone, CEO of Michaels, 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.” This move aims to cater to the former Joann customer base while enhancing the offerings available through Michaels.
Joann’s financial struggles have been significant, filing for Chapter 11 bankruptcy protection twice within less than a year and facing challenges that included constrained inventory and a difficult retail environment. In its January filing, Joann sought to sell most of its assets, leading to its complete withdrawal from the market.
As Michaels steps into this new role, it has already created a dedicated online landing page for former Joann customers, featuring curated product assortments and essential updates. The retailer also reported a 77% increase in fabric-related searches on its website over the past year and a 39% rise in sewing-related inquiries, reflecting a growing interest in these segments.
Michaels plans to expand its fabric, sewing, and yarn selections significantly, with over 600 new products set to hit the shelves. The company is also enhancing fabric assortments in over 680 existing stores, with ambitions to add to 280 more locations this year. With more than 10,000 fabric options now available online, Michaels strives to establish itself as the primary destination for craft enthusiasts in North America.
This acquisition not only helps Michaels tap into an expanded customer base but also reinforces its commitment to meeting rising demands in the craft sector, ultimately fostering a more vibrant crafting community.