The craft industry is projected to continue growing to $5.1 billion, but DIY creatives will no longer be shopping at the end of May. Michaels wants to get their business.
Joan will close 500 locations and will stop accepting gift cards and returns
Joan of the Craft Store asked the judge to begin liquidation sales and provide customers with a short window to return items using gift cards. (Scripps News)
Scripps News
Michaels is about to plead with shoppers at fabric and craft retailer Joanne, who will close all of his stores by the end of May.
Michaels, the largest craft retailer in the United States, posted a message on his website saying, “We welcome Joan’s customers. We have essentials to your go-to!”
The Welcome Note features Joan, who is in the process of closing everything after filing for Chapter 11 bankruptcy in January 2025, filed a second bankruptcy filing within a year.
According to the Retail Liquidator GA Group, about a third of its stores were closed last month, and Joan’s term lenders acquired Joan’s assets in February 2025.
Joan’s ending, focusing primarily on quilting and sewing, will be tough for some consumers, told news site Modern Retail by Abby Glassenberg, co-founder of the Craft Industry Alliance.
“It’s a really important part of the ecosystem,” Glasenberg said. “On the contrary, some of these independent shops of bricks and mortar have a better shot, as they are now the only shops in town without Joan breathing your neck in all major metropolitan areas in the US.”
Joan reported sales of $2.2 billion in 2023, with a net loss of $22.6 million. According to research firm Ibisworld, this is the majority of the U.S. craft, fabric and sewing store industry, estimated at $5.1 billion in 2025 after a fifth consecutive year of growth of 0.2%. Joanne leaves the retail scene by searching #craftideas, as her interest in crafting blossoms on social media, with craft videos taking in the views of Tiktok and Instagram.
Michaels has “important opportunity” with Joan’s store closed
Founded in 1973 and headquartered in Irving, Texas, Michaels has over 1,300 stores in 49 states and Canada, but it appears to be a logical destination for creating customers. But other stores can also make a profit
After Joan announced plans to close the store in February, Numerator conducted an online survey of 500 Joann Shoppers, finding that three-quarters (74%) would likely shift their purchases to chaincraft stores such as Michaels and Hobby Lobby. Many also said they would shop online or go to popular retailers (39%) like Walmart and Target. Other destinations: Independent or local retailers (24%) and dollar or discount stores (23%).
“As a result of widespread store closures, almost three-quarters of Joanne’s shoppers plan to move their spending to other chaincraft stores, such as Michaels and Hobby Lobby, indicating a great opportunity for competitors to grasp the demand that has been evacuated,” he said in a statement to USA Today.
Mike Snyder is a reporter for the trending team at USA Today. You can follow him in the thread, send BlueSky, X with X and send him an email Bliss & @mikegsnider.bsky.social & @mikesnider &msnider@usatoday.com
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