Michaels Acquires Joann’s IP

A central element of the now-defunct Joann (Hudson, Ohio) chain will become part of the stores operated by The Michaels Co. Inc. (Irving, Texas). The latter firm has agreed to buy the intellectual property and private-label brands of the fabrics-and-crafts brand, Michaels announced in a press release. Terms of the deal, which did not include any Joann store spaces, were not released.

With the acquisitions, privately held Michaels said it is expanding its fabric, sewing and yarn assortments, adding more than 600 products across new and existing brands, including sewing and quilting supplies, fabric, yarn, specialty threads, sewing machines and more. The acquisition and expanded product assortment reflect the brand’s overall goal to become the go-to destination for fueling creativity and celebration.

“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,” said Michaels CEO David Boone.

In its release, the retailer noted it was seeing increased searches on its site for “fabric” and “sewing” in recent months. Joann declared bankruptcy in January and subsequently announced that it was unable to find a buyer, so it was going out of business and closing its 800 stores. Michaels, meantime, operates 1300-plus stores in 49 U.S. states and Canada.