AN iconic crafts store has officially purchased a major portion of Joann’s assets as the struggling company’s bankruptcy process ensues.
Following Joann’s second Chapter 11 filing in January and the subsequent closure of its entire store fleet of 800 spots, Michael’s has acquired the Joann label.
Michaels acquired both the intellectual property and private label brands of Joann, the rival announced on Thursday.
“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,” said Michaels CEO David Boone.
“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.”
Michaels has rolled out a dedicated landing page to welcome Joann shoppers to its website, featuring the latest updates as well as a curated assortment of products.
The chain has been a longstanding rival of Joann, fighting for hobbyists’ dollars at its roughly 1,300 US stores.
While both arts and crafts giant have been hit hard by strong competition, raising costs, shifting consumer behavior following the pandemic boom, and other factors, Joann has been worse off.
Michaels has navigated the changing retail landscape quite effectively in comparison to Joann, which filed its second bankruptcy in January less than a year after its first filing in March last year.
The second Chapter 11 filing, which did Joann in for good, came in the wake of the company’s years-long battle with declining sales and dropping market share.
Joann closed its 800 remaining stores by the end of last month following liquidation sales, permanently shutting down its operations.
However, Joann fans will now see the nostalgic retailer live on through Michaels.
For example, Joann’s popular private Big Twist label yarn brands will now fall under the Michaels portfolio.
The label is currently being developed and will be available in Michaels stores and online later this year.
LET’S GET CRAFTING
Michaels scooped Joann’s intellectual property and private labels as it works to expand its own fabric, sewing, and yarn assortment.
The company is dishing out more than 600 new items across new and existing brands, in categories such as sewing and quilting supplies, fabric, yarn, specialty threads, sewing machines, and more.
BRANDS HARD HIT BY BANKRUPTCIES
Many chains have struggled to adapt to a post-Covid retail landscape, with several companies filing for bankruptcy
JoAnn Fabrics and Crafts announced it would close all 800 stores after filing for bankruptcy twice in a year.
Hooters announced plans to file for Chapter 11 bankruptcy protection in February.
Liberated Brands announced that it would be closing all 122 retail locations for its boardsport fashion brands Quiksilver, Billabong, and Volcom.
Forever 21 shut down its headquarters after filing for bankruptcy and laying off 358 employees.
Macy’s announced major restructuring plans amid mass store closures.
Shoppers will be able to get their hands on a more extensive range of fabrics as Michaels aims to fulfill consumer demand, with a 77% increase in searches for fabric on the chain’s site over the past year.
The company has in turn made a huge investment in the category, bumping up its fabric selection in more than 680 stores, with plans for 280 more Michaels locations in 2025.
Searches for “sewing” on the Michaels’ website have likewise spiked, pushing the crafting giant to grow its assortment of related brands beginning in June, including:
Rolling out new Brother and SINGER sewing machines Adding over 50 new needle crafting kits from DMC and Loops & Threads Launching more than 10 Pellon stabilizers and interfacing, specialty scissors, and thread packs, with Pellon cut-to-order batting arriving in August Expanding assortment with new products from Clover, FISKARS, Coats & Clark, and VELCRO Adding best-selling Oliso Smart IronWe’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 BooneMichaels CEOShoppers have also increasingly searched for yarn products from Michaels, leading the company to up its selection of products in the category.
Part of that expansion includes welcoming some of Joann’s private label brands, including Big Twist Value Plus, Big Twist Twinkle, Big Twist Posh, and Big Twist Baby Bear.
The U.S. Sun reached out to Michaels for comment on its acquisition.
Joann is not the only company that has faltered under the macroeconomic pressures weighing down on the retail industry.
Check out the full list of retailers closing down locations for good in June as store chiefs warn of an “exceptionally challenging” time.
Plus, read about why a Crate and Barrel rival with over 266 locations is preparing to file for bankruptcy within weeks.
GettyMichaels purchased Joann’s intellectual property and private label brands[/caption] Read More Details
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