Michaels announced Wednesday it is bringing back a slice of Joann fabrics, as it’s opening two store-in-store experiences: “The Knit & Sew Shop” and “The Party Shop at Michaels.”
The “Knit & Sew Shop” is now available in all Michaels stores across the U.S. and Canada, featuring the Joann name and logo as a dual-branded shop, with a curated assortment of threads, sewing notions, and yarn—with fabric also available in most stores.
The selection will also include the Big Twist yarn collection—hitting shelves at the end of October—which was a favorite among Joann’s loyal customers, and was part of Michaels’ purchase of Joann’s intellectual property (IP).
“The Knit & Sew Shop” will feature new in-store services, including fabric-cutting tables—which will be available in more than 650 stores by mid-October—and new sewing machines.
Michaels now carries fabric in over 840 stores, with plans to expand to over 250 more locations. According to the retailer, it will dedicate nearly 25% more space to fabric and expand its yarn selection by 25% this year “to meet strong customer demand.”
The Texas-based company acquired the beloved fabrics retailer’s IP and private brands, including Big Twist, in June, after Joann closed all of its stores following a second bankruptcy.

By reviving the fabric and craft store’s brand name, Michaels is hoping to make it the destination for crafters.
“The launch [is] a transformative step forward on our mission to become the go-to destination for fueling creativity and celebration,” Michaels CEO David Boone said in a statement.
Over on Reddit, some former Joann customers are visibly excited about Michaels’ new offerings. “Am I really at Michael’s?! Or am I dreaming? Doth my eyes deceive me, or am I really seeing KC yarn for sale in a Michael’s?!” one user wrote, referencing a yarn brand formerly sold at Joann.
However, not everyone is happy about Michaels’ latest moves.
In particular, some Joann loyalists are debating whether the moves can be seen as Michaels attempting to steal former Joann customers, with one writing in this Reddit thread, “I don’t hate Michaels . . . That being said, I would argue that they are trying to be Joann’s (As well as Party City!).”
“The Party Shop at Michaels,” which follows Party City’s collapse in late 2024, features an expanded selection of party supplies, including balloon bars and in-store parties for kids.
Party City said it was forced to close its doors last February because of inflation and changes in consumer spending, after filing for bankruptcy twice.