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Michaels acquires Joann fabrics IP: Will it take over former stores too?
Craft retail chain The Michaels Companies said on Thursday that it has acquired the beloved fabrics retailer Joann, which recently winded down operations and closed all of its stores after a second bankruptcy. The sale included Joann’s intellectual property, as well as its private label brands, like Big Twist yarn. The announcement noted that searches for “fabric” on Michaels.com have skyrocketed by 77% since Joann stores began closing their doors in early 2025. As a result, Michaels has already been adjusting its merchandise accordingly to set the stage for absorbing Joann customers. The chain said it has increased merchandise in the fabric category in over 680 stores. ‘Rising demand across categories’ Post-acquisition, Michaels said it will expand on the kinds of merchandise once available at Joanns, such as fabric, yarn, sewing machines, and other sewing materials even further. The craft store will add more than 600 products once available at Joann’s to its inventory, including increasing its yarn merchandise by 25%. “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,” CEO David Boone said in a statement. Texas-based Michaels has been privately held since a 2021 deal with private equity firm Apollo Global Management, valued at $3.3 billion at the time. The brand has long competed with Joann in many merchandise categories and services such as custom framing. In January 2025, Joann filed for Chapter 11 bankruptcy protection, which was its second in less than one year. Initially, Joann said it would keep stores open during the proceedings. Weeks later, it announced that 500 of its 800 stores would close. The chain closed its last remaining stores in recent weeks. Will Michaels take over former Joann locations? Per Joann bankruptcy filings, Michaels has already taken over at least three leases for what appear to be former Joann stores, but its plans for those leases are unclear. Fast Company reached out to Michaels to confirm whether the chain would be taking over those locations or had plans to acquire additional leases. We will update this post if we hear back.
Craft retail chain The Michaels Companies said on Thursday that it has acquired the beloved fabrics retailer Joann, which recently winded down operations and closed all of its stores after a second bankruptcy.
The sale included Joann’s intellectual property, as well as its private label brands, like Big Twist yarn.
The announcement noted that searches for “fabric” on Michaels.com have skyrocketed by 77% since Joann stores began closing their doors in early 2025.
As a result, Michaels has already been adjusting its merchandise accordingly to set the stage for absorbing Joann customers. The chain said it has increased merchandise in the fabric category in over 680 stores.
‘Rising demand across categories’
Post-acquisition, Michaels said it will expand on the kinds of merchandise once available at Joanns, such as fabric, yarn, sewing machines, and other sewing materials even further. The craft store will add more than 600 products once available at Joann’s to its inventory, including increasing its yarn merchandise by 25%.
“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,” CEO David Boone said in a statement.
Texas-based Michaels has been privately held since a 2021 deal with private equity firm Apollo Global Management, valued at $3.3 billion at the time. The brand has long competed with Joann in many merchandise categories and services such as custom framing.
In January 2025, Joann filed for Chapter 11 bankruptcy protection, which was its second in less than one year. Initially, Joann said it would keep stores open during the proceedings. Weeks later, it announced that 500 of its 800 stores would close. The chain closed its last remaining stores in recent weeks.
Will Michaels take over former Joann locations?
Per Joann bankruptcy filings, Michaels has already taken over at least three leases for what appear to be former Joann stores, but its plans for those leases are unclear.
Fast Company reached out to Michaels to confirm whether the chain would be taking over those locations or had plans to acquire additional leases. We will update this post if we hear back.
