Arts and crafts retail chain Michaels has acquired its bankrupt rival Joann’s intellectual property and private labels.
The retailer aims to expand its assortment of fabric and sewing goods as the demand among customers goes up.
Joann had previously filed for a second bankruptcy in January 2025 and began liquidation sales at its 790 stores across the US in March. It struggled to stay afloat amid mounting competition and inventory issues.
Michaels is making a strategic investment by acquiring the brand assets of its former rival, which operated in the US for around 80 years.
David Boone, CEO of Michaels, said: “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.
“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.”
Additionally, the retailer is ramping up its product assortment to appeal to a larger number of crafting customers by adding 600 fabric, sewing, and yarn products to its collection.
The retailer said the searches for fabric on its website have soared by 77% year-over-year, and Michaels has scaled up its assortment in over 680 stores.
Details on the future of Joann’s brand assets were not immediately disclosed. Bankrupt retailers in the US have been re-emerging into brick-and-mortar retailers through acquisitions.
Big Lots returned under new ownership and recently reopened 78 stores as part of Variety Wholesaler’s portfolio.
Kirkland’s is also in the process of bringing formerly bankrupt Bed Bath & Beyond to smaller-format brick-and-mortar locations.
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