If you’ve been browsing social media or reading news forums, you’ve probably seen people asking: is Michaels going out of business? With rumors about store closures, layoffs, and the challenges facing retail, it’s natural to be concerned.
But before you panic, let’s unpack the facts. We’ll also explore an essential tool that keeps companies like Michaels afloat during disruptions: the business continuity plan (BCP).
By the end of this article, you’ll have a clear understanding of the situation at Michaels and why a solid continuity plan ensures the company stays operational even during challenging times.
What Michaels Really Is
Before diving into the rumors, let’s clarify who Michaels is.
Michaels, officially The Michaels Companies, Inc., is one of North America’s largest arts-and-crafts retailers. It operates over 1,300 stores across the United States and Canada and sells everything from craft supplies and fabrics to party decorations and DIY kits.
Because of its size, any rumors about store closures or layoffs get amplified quickly. So when people ask “is Michaels going out of business,” it’s worth looking at the situation carefully.
Rumors vs. Reality: Is Michaels Going Out of Business?
So, is Michaels actually going out of business? The short answer is no.
There’s no bankruptcy filing, no official company announcement about shutting down all stores, and no evidence that the business is collapsing. Michaels is still operating, still hiring in some areas, and even expanding certain product lines.
But why do these rumors keep circulating? Let’s break it down.
Why People Think Michaels Might Be Closing
Several factors contribute to the speculation:
- Distribution center layoffs: Michaels recently closed a distribution center in California, resulting in some employee layoffs. While this is concerning locally, it’s a standard operational adjustment, not a signal of overall business collapse.
- Industry shake-ups: Competitors like Joann and Party City have closed stores or filed for bankruptcy. People assume Michaels could face the same fate.
- Online chatter and social media rumors: Posts on Reddit, TikTok, and other platforms often claim stores are “closing forever.”
While these events 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?
It’s important to separate cause and effect. Just because competitors have struggled doesn’t mean Michaels is next. In fact, Michaels has gained market share as other craft retailers have closed locations.
Instead of failing, Michaels is strategically expanding into areas left behind by competitors, making it stronger rather than weaker.
Signs That Michaels Is Not Going Out of Business
Here are ways Michaels shows it’s far from closing:
1. Acquiring Competitor Brands
After Joann filed for bankruptcy, Michaels acquired its intellectual property and private-label brands. This means Michaels can sell products previously exclusive to Joann and attract loyal Joann customers.
This type of acquisition signals growth and strategic expansion, not financial collapse.
2. Expanding Party Supplies
Michaels is broadening its offerings to include party supplies and decorations, especially after Party City closed several locations. Adding these products increases customer traffic and revenue.
3. Growing Fabric and Sewing Sections
With Joann out of the picture, Michaels has expanded its fabric, yarn, and sewing offerings. This ensures former Joann customers have an alternative, strengthening Michaels’ market position.
4. Innovative Store Concepts
Michaels has introduced sections like Knit & Sew Shops and Party Shops. These changes reflect investment in the brand and customer experience, not a company preparing to shut down.
Misinterpreted Signs That Fuel Rumors
Even though Michaels is healthy, some normal retail events can be mistaken for “going out of business”:
- Store reorganizations and clearance sales: Moving inventory or clearing seasonal stock can make it seem like a store is closing.
- Local store closures: Individual locations may close due to lease issues or low sales. This is common in retail and doesn’t indicate company-wide failure.
- Distribution center layoffs: Optimizing logistics can result in temporary employee reductions without affecting the overall health of the company.
The Financial Picture
Michaels is privately owned by Apollo Global Management, so it doesn’t release detailed public earnings. But industry data shows:
- Same-store sales are increasing, partly due to acquiring customers from closed competitors.
- The company is investing in new product lines and store concepts.
- There’s no indication of bankruptcy or company-wide liquidation.
Why Rumors Persist
People continue asking “is Michaels going out of business” because:
- Retail closures and layoffs grab headlines.
- Social media amplifies unverified claims.
- Clearance sales and reorganization are misinterpreted as closure signals.
It’s understandable to be concerned, but the facts show that Michaels is not going out of business.
Business Continuity Plan: What It Is
Now, let’s talk about something essential for companies like Michaels: the business continuity plan (BCP).
A business continuity plan is a strategic document that helps a company continue operating during disruptions. It’s basically a survival roadmap for unexpected events whether it’s natural disasters, supply chain issues, cyberattacks, or even rumors that could impact customer confidence.
Why a Business Continuity Plan Matters
For a retailer like Michaels, a BCP ensures that:
- Stores remain operational during disruptions.
- Supply chain issues don’t stop products from reaching customers.
- Employees know how to respond in emergencies.
- Customers continue receiving consistent service, even in difficult times.
Without a continuity plan, temporary problems could escalate into long-term losses or damage to the company’s reputation.
Key Components of a Business Continuity Plan
- Risk Assessment: Identify potential threats to operations, from store closures to cyberattacks or supply chain disruptions.
- Business Impact Analysis (BIA): Determine which parts of the business are critical. For Michaels, this includes inventory management, online sales systems, and customer service.
- Recovery Strategies: Develop methods to keep essential operations running. This could include online-only sales during store disruptions, alternate suppliers, or temporary store closures while maintaining other locations.
- Communication Plan: Ensure employees, customers, and suppliers are informed. Clear communication can prevent panic and misinformation.
- Testing and Maintenance: Regularly test the plan to ensure everyone knows their roles and the plan works in real situations.
How Michaels Could Use a Business Continuity Plan
If Michaels had a sudden disruption like a natural disaster, cyberattack, or temporary store closure a BCP would allow the company to:
- Quickly reroute inventory and deliveries.
- Communicate with employees about operational changes.
- Maintain customer trust through consistent updates.
- Protect revenue and minimize downtime.
Essentially, a BCP ensures that temporary problems don’t turn into permanent failures, which is why Michaels continues to operate smoothly despite rumors.
The Difference Between Store Closures and Going Out of Business
It’s important to understand the difference:
- Store closures happen when individual locations shut due to lease issues, poor sales, or other local factors. This is normal for any retail chain.
- Going out of business means company-wide bankruptcy, liquidation, and permanent closure of all locations.
Michaels may close individual stores occasionally, but this does not mean the company is going out of business.
FAQs About Michaels and Business Continuity
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: Why do some stores close?
A: Some individual locations may close due to lease issues, low traffic, or market optimization, but this does not indicate a company-wide shutdown.
Q: Are layoffs a sign of bankruptcy?
A: No. Distribution center layoffs are normal operational adjustments and not evidence of bankruptcy.
Q: What is a business continuity plan?
A: It’s a strategic plan that helps a company continue operating during disruptions, protecting employees, customers, and revenue.
Q: How does a business continuity plan help Michaels?
A: It ensures stores remain operational, supply chains continue functioning, employees know their roles during emergencies, and customers continue to receive products and services.
Conclusion: Is Michaels Going Out of Business?
The simple truth is: Michaels is not going out of business.
While individual stores may close and rumors may spread, the company continues to operate, expand, and invest in its products and services. Strategic acquisitions, growing product categories, and potential use of a business continuity plan all help Michaels remain resilient in a challenging retail environment.
For crafters, DIY enthusiasts, and shoppers, this means you can continue visiting Michaels stores and buying supplies with confidence. The company is here to stay, adapting to challenges and positioning itself for long-term success.
