If you’ve been scrolling through social media or reading online forums, you’ve probably seen people asking: is Michaels going out of business? Between store closures, layoffs, and retail rumors, it’s easy to get worried. In this post, we’re going to break down the truth, separate facts from speculation, and give you a clear picture of what’s happening with this craft giant.
What Michaels Really Is
Before we dive into the rumors, let’s set the stage. Michaels, officially known as The Michaels Companies, Inc., is one of North America’s largest arts-and-crafts retailers. With over 1,300 stores across the U.S. and Canada, Michaels has been the go-to place for crafting supplies, fabrics, DIY kits, framing, and even party decorations.
Because of its massive presence, any talk of store closures or layoffs sparks concern. So when people ask, is Michaels going out of business, it’s worth a closer look.
Rumors vs. Reality
So, is Michaels actually going out of business? The short answer is no.
There’s no bankruptcy filing, no official announcement about shutting down all stores, and no evidence of a company-wide liquidation. Michaels is still operating, still opening stores, and even expanding in some areas.
But let’s dig into why the rumors started in the first place.
Why People Think Michaels Might Be Closing
Several factors fueled the panic:
- Distribution center layoffs: Michaels recently closed a distribution center in California, which led to some layoffs. For employees and nearby communities, this can look alarming.
- Industry shake-ups: Other craft retailers like Joann and Party City have filed for bankruptcy or shut stores, so people assume Michaels could be next.
- Online chatter: Social media and Reddit threads have amplified the rumors with posts claiming stores are “closing forever.”
While these things can make it look like the company is struggling, they’re not proof that Michaels is going out of business.
Is Michaels Going Out of Business Because Other Stores Failed?
Some people assume Michaels is struggling just because competitors have gone under. The truth is the opposite. Michaels has actually gained market share from stores like Joann and Party City that have closed down. Instead of failing, Michaels is expanding into spaces left behind by competitors.
Strategic Moves Showing Michaels Is Not Closing
Here are a few ways Michaels proves that it’s not going out of business:
1. Acquiring Joann’s Brands
After Joann filed for bankruptcy, Michaels acquired its intellectual property and private label brands. This means Michaels can sell popular Joann products in its stores and attract customers who used to shop at Joann. Rather than shrinking, Michaels is absorbing parts of its competitor to grow its market.
2. Expanding Party Supplies
Michaels isn’t just arts and crafts anymore. With Party City closing stores, Michaels has increased its inventory of party supplies, from balloons to decorations. This expansion attracts a wider customer base, proving the company is investing in growth, not retreating.
3. Growing Fabric and Sewing Sections
With Joann out of the picture, Michaels is stepping up its fabric, yarn, and sewing offerings. Customers who previously shopped at Joann can now find these products at Michaels. This expansion is a clear sign of a company adapting, not closing.
4. Innovative Store Concepts
Michaels has introduced new sections like Knit & Sew Shops and Party Shops. These changes make stores more attractive to shoppers and reflect an investment in the brand, which is the opposite of going out of business.
Signs People Mistake for “Going Out of Business”
Even though Michaels is healthy, certain events can be misinterpreted:
- Store reorganizations: Moving inventory, seasonal resets, or clearance sales can look like closing sales.
- Local store closures: Some individual locations may close due to lease issues, but this is normal in retail.
- Distribution center layoffs: These are often logistics optimizations, not company-wide failures.
These factors can make it easy to assume that Michaels is struggling when, in reality, it’s just adjusting to the market.
Financial Health of Michaels
Michaels is privately owned by Apollo Global Management, so it doesn’t release detailed public earnings. However, reports show:
- Same-store sales have been increasing recently.
- The company is strategically expanding into new product lines.
- They are actively acquiring competitor brands and integrating them into their stores.
There’s no evidence of financial collapse, bankruptcy, or mass liquidation.
Why Rumors Persist
People continue to ask is Michaels going out of business because:
- Layoffs and closures grab attention
- Retail news highlights failing competitors
- Social media amplifies unverified information
- Clearance sales or store reorganizations are misinterpreted
While these are understandable concerns, they do not reflect the overall health of Michaels.
Understanding the Difference: Store Closures vs. Going Out of Business
It’s important to differentiate:
- Store closures: Individual locations may close due to poor performance, lease issues, or market shifts. This happens in any large retail chain.
- Going out of business: This means bankruptcy, company-wide liquidation, and permanent closure of all locations.
Michaels has some local store closures like any retailer, but it is far from going out of business.
FAQs About Michaels
Q: Is Michaels actually going out of business?
A: No. The company is still operating, expanding, and investing in new products and store concepts.
Q: Are employees being laid off because of bankruptcy?
A: No. There were layoffs at a distribution center, which is a normal operational change, not a sign of bankruptcy.
Q: Are Michaels stores closing?
A: Some individual stores may close, but this is normal in retail and does not mean the company is going out of business.
Q: Did Michaels acquire another company because they’re failing?
A: No. Michaels acquired Joann’s brands after Joann filed for bankruptcy. Michaels is financially healthy.
Q: Is Michaels struggling financially?
A: While the retail environment is challenging, Michaels is adapting, expanding, and gaining market share, which indicates stability.
Conclusion
So, is Michaels going out of business? Absolutely not.
Michaels is actively adapting to a changing retail environment, absorbing market share from competitors, expanding product lines, and keeping stores open. Rumors will continue to circulate, but the facts show that Michaels is alive, healthy, and growing.
If you’re a crafter, DIYer, or just curious about the retail landscape, you can rest easy: Michaels is not disappearing anytime soon.
