Michaels Acquires Joann's Brands, Expands Fabric Offerings by 600 Products

Michaels, a prominent arts and crafts retailer, has completed the acquisition of Joann's intellectual property and popular brands. This strategic move is part of Michaels' broader initiative to expand its fabric, sewing, and yarn product offerings. The acquisition includes the well-known "Big Twist" yarn brand, which has been a staple in Joann stores for many years. These products are currently being developed as part of Michaels' product lineup and are expected to hit stores and online platforms later this year. Additionally, Michaels has launched a dedicated landing page to welcome former Joann customers.

As part of its comprehensive expansion into the fabric business, Michaels has also announced the addition of over 600 new products from both established and new brands. These products include quilting supplies, fabrics, specialty threads, and sewing machines. Michaels, founded in 1973, operates 1,300 stores across 49 states in the U.S. and Canada. The company's parent organization also owns Artistree, a manufacturer of custom framing products.

Joann, which traces its history back to a single store in Ohio in 1943, has faced significant operational challenges in recent years. The company cited weak consumer demand, inventory shortages, and intensified competition as primary factors contributing to its decline. Joann announced its closure in February, just a month after filing for Chapter 11 bankruptcy protection for the second time in a year. At that time, the company indicated that financial services firm GA Group, along with Joann's regular lenders, had been selected to acquire "substantially all assets" and conduct liquidation sales across all stores.

This acquisition by Michaels is a strategic move to enhance its product offerings and better serve its growing customer base. The company aims to provide a wider range of products, better value, and more inspiration to its customers. The financial terms of the acquisition have not been disclosed, and further information was sought from Michaels.