|
The
Michaels Companies announced on Thursday that it had completed
its purchase of Joann's intellectual property and private label
brands — in an acquisition that arrives as the Texas-based arts
and crafting chain works to expand its own fabric, sewing and
yarn offerings.
“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,” Michaels CEO David Boone said in a
statement. The deal, he added, allows the company to better
“respond to rising demand” among both new and existing
customers.
Financial terms of the acquisition were not disclosed. The
Associated Press reached out to Michaels for further information
on Friday.
With roots dating back to a single Ohio storefront in 1943,
Joann had grown into a destination for generations of sewers,
quilters, knitters and lovers of other crafts for more than 80
years. But more recently, operational challenges continued to
pile up — with the retailer pointing to sluggish consumer
demand, inventory shortages and rising competition.
Joann announced it would be going out of business back in
February, just one month after filing for Chapter 11 bankruptcy
protection for the second time within a year. At the time, the
company said financial services company GA Group, together with
Joann’s term lenders, had been selected as the winning bidder to
“acquire substantially all of Joann’s assets” and conduct
going-out-of-business sales at all store locations.
Michaels on Thursday said that its purchase of Joann's IP and
private brands included the acquisition of “Big Twist” yarns,
which had become a staple in Joann stores over the years.
Those “Big Twist” labels are now being developed as part of
Michaels' portfolio — and will be available in-stores and online
later this year, the company said. In the meantime, Michaels has
also dedicated a landing page to welcome former Joann customers
online.
And as part of its overall expansion into fabrics, Michaels said
on Thursday that its adding more than 600 new products from new
and existing brands — including quilting supplies and fabrics,
specialty threads, sewing machines and more.
Michaels, founded in 1973, currently operates 1,300 stores
across 49 U.S. states and Canada. Its parent company also owns
Artistree, a framing merchandise manufacturer.
All contents © copyright 2025 Associated Press. All rights reserved
|
|
