Craft Labels from New York (AP) The now-closed fabric retailer Joanne is making way for a new home: Michaels.
Michaels announced on Thursday that it has finalized the acquisition of Joanne’s intellectual property and private label brands. The Texas-based arts and crafts chain aims to enhance its own fabric, sewing, and thread offerings.
“We are thrilled to welcome Joanne’s customers into our creative family and are dedicated to providing the variety, value, and inspiration they seek at Michaels,” stated Michaels CEO David Boone. He noted that this acquisition will enable the company to better meet the increasing demand from both new and existing customers.
Details regarding the financial aspects of the acquisition have not been revealed. The Associated Press reached out to Michaels for further information on Friday.
The story traces back to a 1943 Single Ohio Storefront. For over 80 years, Joanne transformed into a beloved destination for sewers, quilters, knitters, and enthusiasts. However, recent operational hurdles have accumulated, with retailers citing consumer demand issues, stock shortages, and growing competition.
Joanne announced its closure in February, shortly after entering Chapter 11 Bankruptcy Protection for the second time within a year. At that time, the company indicated that financial services firm GA Group and Joanne’s term lender had “acquired virtually all of Joanne’s assets” and were selected as the successful bidder for conducting the out-of-business sales at all locations.
Michaels confirmed on Thursday that Joanne’s IP and private brand acquisitions included the well-known “big twist” thread, a staple in Joanne stores for many years.
These “big twist” products are being integrated into Michaels’ portfolio and will be available both in-store and online later this year, the company announced. In the meantime, Michaels has also introduced a landing page to welcome former Joanne customers online.
Additionally, as part of its overall expansion into fabrics, Michaels revealed that it will introduce over 600 new products from both new and established brands, covering quilting supplies, fabrics, specialty threads, and sewing machines.
Founded in 1973, Michaels currently operates 1,300 stores across 49 U.S. states and Canada. The parent company is also the owner of Artistree, a manufacturer of framing products.
Source: apnews.com