Under the deal, Michaels took on the intellectual property and private label brands of Joann Fabrics. The news follows Joann’s recent decision to close all 790 of their stores. The acquisition, announced on Thursday, comes after Joann filed for bankruptcy in January, marking a significant transition in the crafting retail landscape.
Joann Fabrics was founded as a small textile shop in Cleveland, Ohio in 1943. Since then, it has turned into a household name in the crafting and fabric retail world. At its height, the corporate giant ran retail chains in every state but just one—the one state where it got its start. Following bankruptcy, Joann began shuttering its stores in April. By February, the company was forced to take the rather painful step of closing all of its stores.
In Michaels’ words, this acquisition will help them be better positioned to serve their new and existing customers. Under their vision, they would be able to meet a growing community demand for more art and crafting supplies and triple or quadruple their current offerings. The firm company would assume control of more than 600 different products. These are in a number of different categories such as Fabrics, Quilting & Sewing Notions, Sewing Machines and Yarn. This innovative gambit fits Michaels’ ambition to be the first stop for everything needed to make and create.
The CEO of Michaels, David Boone, was excited at the prospect of Joann customers coming into their stores.
“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.” – David Boone, Michaels CEO
Michaels is further bulking up its inventory through the purchase of Joann’s private label brands, such as Big Twist yarns. The company is increasing the number of Brother and Singer sewing machines, as well as fabric selections in more than 680 stores. The company plans to roll out fabric assortments to 280 additional stores across the country by the end of the year.
One big winner in this category has been Michaels, which just reported a jaw-dropping 77% surge in searches for fabric on its website in the last year. Today, the company’s website automatically reroutes anyone who goes to Joann’s old home. And it welcomes former Joann shoppers with a friendly howdy!
“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.” – David Boone, Michaels CEO
