You’ve seen the threads. “Is Michaels closing?” TikTokers speculate, your craftiest aunt texts you in all caps, and Google autocomplete lights up. Let’s clear the fog. Michaels—the arts and crafts giant with more foam flowers than you have socks—is still in business. And not just clinging on by a paintbrush. As of June 2025, Michaels is operating nationwide and actively growing.
Why the fuss? If you’ve watched the arts and crafts retail sector, you know it’s been a wild year. Joann Fabrics retired their green logo after a long farewell tour. Other niche players folded shop. No wonder folks are asking: is Michaels next?
Spoiler: It’s not.
Michaels’ Stores: Still Everywhere, Still Selling Glue Guns
Let’s talk real estate. Michaels stores are—if you hadn’t noticed—still dotting suburban shopping centers coast to coast. That “Store Closing” sign you swore you saw? Maybe it was a seasonal lease or just a bad dream after sorting yards of ribbon. Per recent company announcements and local media spot checks, no national chain-wide closures have been confirmed.
Are some locations closing or relocating every year? Sure. Find a retailer that doesn’t rearrange its footprint when leases run up and towns shift. But all evidence—SEC filings, press releases, even chatter on industry forums—points to Michaels staying open.
Rumors bounce around, especially post-pandemic. Folks confuse one-off store closures with entire companies vanishing. And yes, when fellow craft chain Joann hit the bankruptcy parade in 2024, people assumed Michaels would follow. So far? No dice.
The Joann Files: Why Michaels Is Gobbling Up Fabric Brands
Here’s where the plot thickens. Big drama: Joann Fabrics, after decades in business, goes bankrupt. Suddenly, there’s a warehouse full of fabric and millions of loyal crafters wondering where to get their batik fix.
Enter Michaels, stage right.
In June 2025, Michaels acquired Joann’s intellectual property and private label brands. This isn’t Michaels running a white elephant sale—this is a chess move. The goal? Soak up Joann’s former customers and beef up Michaels’ own soft goods and sewing aisle. Per company spokespeople, Michaels plans to expand its assortment of fabric, sewing, and craft supplies by leveraging beloved Joann brands.
This could mean classic Joann products—and perhaps even their loyal customers—get a new lease on life inside your neighborhood Michaels.
Bigger Picture: Is Michaels Financially Sound?
Short answer: Yes, Michaels is still making money. Deep breaths, googly-eyes fans.
Here’s what you need to know. Michaels went private in 2021, bought out by Apollo Global Management for $3.3 billion. Since then, no bankruptcy filings, no secret profit warnings, no headlines screaming “the end is nigh.” Per the latest investor updates, the company has held steady and is putting cash into store upgrades and tech.
Remember MakerPlace? That’s Michaels’ crack at an online craft marketplace—think Etsy, but with glitter and coupon codes. Add to that: an investment in e-commerce, new loyalty programs, and a move to lower prices across over 5,000 products in 2023 and 2024 (per Michaels corporate releases). Mix in interactive in-store events and upgraded supply chains, and you don’t get “closing down”—you get “let’s fight for more market share.”
“Hobby spending is down!” some Wall Streeters warn. And the big-box exodus is real—just ask Bed Bath & Beyond or Tuesday Morning. But Michaels isn’t idling. Financial data points to moderate but ongoing profitability—a rare thing in hobby retail post-2020.
Why All the Drama? Arts and Crafts in 2025: Not a Walk in the Park
Arts and crafts retail has always been scrappy. Blame TikTok, fast fashion, or rising rents—take your pick. Post-pandemic, consumers got choosy, inflation took a bite, and online pressure rose. The sector saw plenty of losers, but Michaels has kept its scissors sharp.
Take labor: Hiring costs climbed. Michaels responded with more self-checkout, less in-store bloat, and steeper focus on e-commerce. Corporate channels whisper of investments in automation and even AI project planners.
Plus, let’s not forget pricing. When you’ve got a customer base that expects coupons you can stack to the moon, margin protection is tricky. Michaels fought back by slashing prices outright on thousands of core items in 2023. More volume, less coupon math.
DIY trends keep mutating, too. When everyone was making masks in 2020, fabric flew off shelves. Now, it’s back to home décor and party crafts. But Michaels has always played the variety card. Having glue, embroidery floss, and candles under one roof proved to be better insulation than Joann’s narrower fabric focus.
Michaels’ Playbook: Innovations That Actually Move the Needle
Michaels’ management isn’t just patching leaks—they’re drilling new wells. Let’s talk strategy.
First, they bet on experiences. Think classes, demos, and maker nights, not just endless aisles of beads. Per marketing reports, these events drive traffic and build brand loyalty—especially with younger shoppers.
Then there’s MakerPlace, their “Buy and Sell” online platform for handmade goods. Is it Etsy-level yet? Not by a long shot, but it’s a shot across the bow. Crafters who sell are often crafters who buy. More stickiness for Michaels, and maybe a new revenue stream if they get marketplace fees right.
Michaels also invested in tech—same-day delivery, curbside pickup, and a beefed-up app. Less time waiting in line, more time hot-gluing pompoms onto whatever Pinterest told you to make.
And let’s not forget—acquiring Joann’s private labels lets Michaels cross-sell to millions of orphaned Joann customers. If you’re not leveraging failed competitors’ leftovers, are you even in retail?
What’s Next? Growth Mode, Not Shutdown Mode
So, where’s the puck headed? Michaels isn’t acting like a company on life support. The Joann deal signals expansion ambitions. Leadership hints at more robust fabric and sewing aisles, thicker e-commerce offerings, and investments in omnichannel tooling.
Market watchers at places like “Retail Dive” and “Forbes” note that while the overall craft market is turbulent, Michaels sits in the “last man standing” seat among big-box hobby shops. That’s not a fluke—it’s adaptability.
There’s also more white space opening up. With Joann gone, Michaels becomes the default for everything from scrapbooking to sewing to wedding décor. Competitors? Mostly smaller chains, online pure-plays, and mass retailers dabbling in crafts with half-hearted endcaps. Michaels, meanwhile, is cozy with major brands and adding in-house offerings to boot.
The risks? Same as always—rising costs, fickle foot traffic, and algorithm-driven e-commerce. The upside? A shot at dominating a chunk of the $40B U.S. creative goods market, especially with Joann fans now wandering the virtual aisles looking for a new fixer.
Want more angles on how retailers pivot to survive? See this rundown on strategic adaptations at BusinessDivers.
Rumors vs. Reality: Why the “Michaels Is Closing” Story Persists
So why does the “Michaels is doomed” meme never die? Three words: TikTok, Facebook, clickbait.
Every time a mall loses a tenant or a shopper sees an empty shelf, the doomsaying flies. Social posts love a collapse story. Confirmation bias does the rest. And when big names like Bed Bath, Staples, or Joann file Chapter 11, everyone assumes Michaels is next up for the guillotine.
But actual evidence? Zero. Michaels’ official pages emphasize “open for business.” Industry news—retailers’ bazaar for bankruptcy filings—is silent on Michaels. Investor calls point to ongoing investments, not shutdowns.
A healthy skepticism is smart—retail isn’t for the faint of heart. But treating rumor as gospel won’t serve your decision-making any better than double-sided tape.
Should You Worry? Only If You Hate Glitter
Here’s the net-net: Michaels is here, busy, and buying up what failed competitors leave behind. Store closures aren’t on the map. Bankruptcy isn’t coming. If anything, Michaels is consolidating its grip as the biggest specialty arts and crafts chain left standing.
If you’re a hobbyist—crack open your glue gun. If you’re an investor or vendor, pay more attention to actual earnings calls than to viral fate-guessing.
Bottom line? If it doesn’t move the metric, it’s noise. Michaels is surviving, strategizing, and set up to snag even more of the crafty pie. Rumors that say otherwise don’t stick—much like off-brand school glue.
See you in the yarn aisle.
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