Michaels, the largest arts and crafts retailer in North America, has acquired the intellectual property and private label brands of its former competitor Joann, following Joann’s Chapter 11 bankruptcy and the closure of its entire store fleet. The acquisition marks a significant strategic expansion for Michaels, as it aims to absorb Joann’s customer base, broaden its product offerings, and solidify its leadership in the crafting retail sector.
Joann Bankruptcy Triggers Industry Shift
Joann, a 81-year-old retailer known for its dominance in the fabric and sewing categories, filed for bankruptcy protection in March 2025. The company subsequently announced plans to liquidate and close all 800 of its stores by May 31. Once a staple for home sewers, quilters, and crafters, Joann’s exit created a substantial gap in the specialty retail landscape—particularly in the fabric and yarn markets.
Seizing the opportunity, Michaels acquired Joann’s private label brands and associated intellectual property. These include customer favorites such as Big Twist yarn, which had cultivated a loyal following among craft consumers.
Product Integration and Inventory Expansion
As part of the transition, Michaels will introduce over 600 new products across the fabric, sewing, and yarn categories. The company is expanding its fabric assortment in 680 of its stores this summer, with plans to introduce fabric offerings in 280 additional stores later in the year.
The expansion includes not only Joann’s private labels but also national brands previously available through Joann, including Bernat, Lion Brand, Red Heart, Brother, and Singer. Michaels reports that its yarn selection will increase by approximately 25%, and new sewing machines and accessories will also be rolled out.
Michaels intends to position its stores as the primary destination for former Joann customers, offering comparable products and significantly expanded inventory in the same categories.
Demand-Driven Strategy
According to Michaels, customer demand for sewing and fabric products surged after Joann’s closure announcements. The company reported a 77% increase in related searches on Michaels.com, indicating strong consumer interest and unmet demand in the marketplace.
“This acquisition enables us to immediately serve the needs of millions of crafters who relied on Joann’s product assortment,” said Michaels CEO Ashley Buchanan in a statement. “Our focus is on ensuring continuity for customers while strengthening our leadership in key categories.”
Broader Competitive Positioning
The acquisition is part of a broader strategy by Michaels to capitalize on disruptions within the specialty retail sector. Earlier this year, the company expanded its presence in party goods and balloons to fill the void left by Party City’s downsizing.
These moves reflect a deliberate effort by Michaels to capture share from competitors in decline, while leveraging its nationwide footprint and e-commerce platform to grow market dominance.
While terms of the Joann acquisition were not disclosed, Michaels confirmed that customers can expect availability of the newly acquired product lines in stores and online beginning this summer. Further rollout details will be announced in the coming weeks.
Outlook
With the absorption of Joann’s brands and the planned inventory expansion, Michaels is positioned not only to retain former Joann shoppers but to broaden its reach across multiple crafting categories. The company’s dual strategy of acquisition and category expansion underscores its ambition to be the go-to retailer for DIY, fabric, and party supplies nationwide.
As the retail landscape continues to evolve, Michaels appears to be taking an aggressive and opportunistic approach—cementing its role as the dominant player in the arts and crafts market.
