Michaels acquires Joann Fabrics in a deal announced in a press release on June 5, 2025. As Joann Fabrics closes all its stores following a second Chapter 11 bankruptcy, Michaels steps in by purchasing Joann’s intellectual property and private-label brands. This acquisition aims to retain Joann customers and bolster Michaels’ dominance in the fabric and craft supply market.
Joann Fabrics Closing All Stores Amid Bankruptcy
Joann Fabrics, founded in 1943, recently filed for bankruptcy for the second time within a year. The company initially planned to close 500 of its 800 stores, then decided to shutter all remaining locations by late May 2025, citing ongoing financial strain from inflation, debt, and weak sales.
As of May 31, 2025, every Joann store has officially closed. Experts point to Joann’s heavy inventory costs, competition from Michaels and Hobby Lobby, and poor e-commerce adaptation as key contributors to its downfall. The closures have left many crafters scrambling for new sources ahead.
Michaels Steps In: Acquiring Joann Brands
Michaels’ strategic move—Michaels acquires Joann Fabrics IP brands—involves picking up Joann’s private-label labels, such as Big Twist Value Plus, Twinkle, Posh, and Baby Bear, as well as its trademarked assets.
The acquisition includes over 600 products in fabric, sewing, and yarn categories, plus top-tier items like Brother and Singer sewing machines, Oliso Smart Irons, and needlecraft kits from DMC and Loops & Threads.
Michaels CEO David Boone described the acquisition as a way to “better serve both new and existing customers” and respond to growing demand for creating and celebrating across North America.
What Joann Customers Can Expect at Michaels
Expanded Fabric, Sewing, and Yarn Offerings
Michaels reports a 77% increase in “fabric” searches and a 39% increase in “sewing” searches on its site this past year.
The retailer has added fabric sections in over 680 stores and plans 280 more expansions this year.
Over 10,000 fabric options are now available online, ranging from quilting cottons to home décor materials.
New Products and Brands
More than 600 new items—including sewing machines, stabilizers, scissors, and thread packs—are being rolled out.
Yarn offerings will increase 25%, with 60 new Loops & Threads lines and national brands like Bernat, Lion Brand, and Red Heart joining the shelves.
Joann’s Big Twist products will debut in Michaels stores and online later in 2025.
Dedicated Welcome for Joann Shoppers
Michaels has launched a special landing page for Joann customers to help them locate familiar products and discover new ones.
The goal: make the transition seamless and prevent customers from drifting to competitors.
Industry Impact: Michaels vs. Retail Retreat
Joann’s exit marks a major shift in the craft retail sector. A large portion of former Joann customers plan to shop at Michaels or Hobby Lobby. With Joann gone, Michaels is well-positioned to capture former Joann business while competitors vie for the remaining market share.
Retail experts point to Joann’s downfall as a symptom of broader issues in specialty retail—high inventory costs, debt burdens, and lagging digital capabilities. Meanwhile, Michaels has benefited from a more diversified product strategy and stronger online presence.
What This Means for Crafters
Continuity of Joann Brands: Popular private-label lines like Big Twist Posh and Baby Bear will return under the Michaels banner, keeping familiar textures and styles alive.
Deeper Inventory: Michaels now offers a more robust selection of fabric, yarn, sewing, and needlecraft products.
Convenient Shopping: With over 1,300 Michaels stores and a strong online presence, shoppers can expect better availability and convenience.
Enhanced Customer Experience: Through special landing pages, curated brand assortments, and promotional offers, Michaels aims to win over former Joann customers.
Michaels acquires Joann Fabrics IP deal represents a strategic consolidation of the craft supply sector. As Joann Fabrics closes its stores, Michaels is not simply filling the void—it’s integrating Joann’s legacy branding into its broader platform. For craft enthusiasts, this shift promises continuity of beloved products and an enriched shopping experience across Michaels’ vast network.
