Michaels Acquires Joann Brands as Craft Retailer Expands Into Fabric Market

The Michaels Companies announced June 5 it has successfully completed the acquisition of Joann’s intellectual property and private label brands, marking a strategic expansion into fabric and sewing markets following the competitor’s collapse.

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Joann filed for Chapter 11 bankruptcy in January 2025, its second filing in less than a year. The retailer’s 790 stores began liquidation sales in March, with all locations now closed.

The acquisition includes Joann’s beloved Big Twist yarn brands – Big Twist Value Plus, Big Twist Twinkle, Big Twist Posh and Big Twist Baby Bear – which will be developed as part of Michaels’ portfolio and available in stores and online later this year.

Michaels is expanding its fabric, sewing and yarn assortment by adding over 600 products across new and existing brands, including sewing and quilting supplies, fabric, yarn, specialty threads and sewing machines.

The Irving, Texas-based retailer cited growing customer demand as the driver for expansion. Searches for fabric on Michaels.com increased 77% over the past year, while sewing searches rose 39%.

Reflecting the growing resurgence in knitting, crocheting and other fiber arts, Michaels is actively expanding its yarn assortment by 25% this year. The company plans to release over 60 new Loops & Threads offerings starting this month, with new collections from Red Heart, Bernat and Lion Brand launching this summer.

Michaels has made significant investments in fabric, increasing assortments in over 680 stores with plans for 280 more locations this year. The retailer now offers over 10,000 fabric options online, from vibrant cottons for quilting to versatile broadcloth for apparel and home decor.

“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 CEO David Boone. “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.”

Michaels created a dedicated landing page for incoming Joann customers featuring curated product assortments. Research shows Joann customers are likely to turn to Hobby Lobby or Michaels as stores close, with 80% of those surveyed upset by Joann’s closures.

This marks the second time Michaels has capitalized on a competitor’s bankruptcy. In April, the closure of about 700 Party City stores prompted Michaels to expand its selection of balloons and other celebration-themed supplies.

Financial consulting firm Debtwire added Michaels to its “Retail Distressed Watchlist” due to potential tariff impacts, since 75% of its suppliers are from China. However, “Purchasing the Joann intellectual property and private label brands is an inexpensive way for Michaels to expand its product line, as there were probably not many other buyers interested in those assets,” said Tim Hynes, head of credit research for Debtwire.

GA Group and A&G Real Estate Partners auctioned Joann’s 790 store leases and five distribution centers in April as part of the wind-down process. Michaels operates over 1,300 stores in 49 states and Canada, positioning it to serve displaced Joann customers across North America.