Michaels, the North American arts and crafts retailer, is aggressively expanding its fabric and sewing supplies following the downfall of competitor Joann. On Thursday, the company announced it had acquired Joann’s private-label brands and intellectual property, including the popular “Big Twist” yarn line, as it seeks to capture displaced customers.
The move comes as online searches for “fabric” on Michaels’ website surged nearly 80% over the past year, while searches for “sewing” rose by 40%. In response, the retailer is adding 600 new products, including quilting materials, sewing machines, and yarn, with expanded selections already in 680 of its 1,300 stores. An additional 280 locations will receive the new inventory by year’s end.
“This acquisition allows us to better serve both new and existing customers, respond to rising demand, and strengthen our position as the go-to destination for creativity in North America,” said Michaels CEO David Boone in a statement.
Joann, which shuttered all 800 of its physical stores in recent months, saw its private-label brands absorbed by Michaels as part of the deal. The “Big Twist” collection will be integrated into Michaels’ product lineup and available online and in stores later this year.
This isn’t the first time Michaels has capitalized on a competitor’s decline. Earlier this year, the retailer expanded its party supply offerings after Party City closed roughly 700 locations.
However, financial analysts caution that Michaels faces challenges. Debtwire, a financial consulting firm, recently added the company to its “Retail Distressed Watchlist,” citing heavy reliance on Chinese suppliers—which exposes it to tariff pressures—and limited public financial transparency.
“Buying Joann’s intellectual property was a cost-effective way for Michaels to grow its product line, given the lack of competing bids for these assets,” said Tim Hynes, Debtwire’s head of credit research.
Despite these risks, Michaels’ strategic expansion aims to fill the gap left by Joann’s exit, positioning itself as the dominant player in the crafting and fabric retail space.
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