You’ve probably walked into a Michaels store at some point, maybe searching for a specific shade of acrylic paint or a last-minute picture frame. It’s that familiar smell of cinnamon pinecones and dried eucalyptus. But behind those automatic sliding doors, The Michaels Companies Inc is currently undergoing one of the most aggressive transformations in its 50-year history. It’s not just about glitter and yarn anymore.
Honestly, the retail landscape is a bit of a mess right now, but Michaels is trying to lean into the chaos. After being taken private by Apollo Global Management in a massive $5 billion deal back in 2021, the company stopped answering to public shareholders. This allowed them to get weird and experimental. Instead of just selling supplies, they’re trying to own the entire "maker" lifecycle, from the first time you pick up a crochet hook to the moment you try to sell your finished scarf on their new Etsy competitor, MakerPlace.
✨ Don't miss: Companies That Endorse Trump: What Most People Get Wrong
The Shocking Takeover of Joann’s Soul
The biggest news hitting the craft world recently involves the demise of a long-time rival. In mid-2025, Michaels made a power move that basically cemented their dominance. They didn't buy the whole Joann Inc. company—which had been struggling through bankruptcies—but they did snatch up their intellectual property and private-label brands.
If you were a die-hard fan of Big Twist yarn, you don't have to panic. Michaels now owns it. They’ve integrated over 600 products from the Joann catalog into their own stores.
It was a calculated land grab. Since Joann shuttered hundreds of locations, Michaels saw a massive spike in "fabric" and "sewing" searches on their site—up 77% and 39% respectively. They’re now rapidly expanding fabric sections in nearly 1,000 stores. It’s a gutsy play to capture the "sewists" who suddenly found themselves without a home base.
Why Being Private Matters in 2026
When Michaels was public (ticker: MIK), every quarter was a high-stakes drama. Now, under Apollo’s wing, they can focus on long-term infrastructure without worrying about a temporary dip in the stock price.
David Boone, who took over as CEO, has been pushing an "omnichannel" strategy that sounds like corporate speak but basically just means they want the app, the website, and the physical store to actually talk to each other. Have you tried their same-day delivery? They’ve partnered with DoorDash and Uber Eats because they realized that if you're halfway through a painting and run out of Titanium White, you don't want to drive to the store. You want it brought to your house in 45 minutes.
The Financial Turnaround
It wasn't always looking this good. Back in 2022, the company was bleeding cash with a $255 million deficit in free operating cash flow. Fast forward to the most recent data, and they’ve swung back into the black, generating $136 million in positive cash flow.
S&P Global Ratings even bumped up their credit rating because they’re finally seeing stable earnings. They are currently projecting a 10% increase in sales through the end of 2026. That’s huge for a "legacy" brick-and-mortar retailer.
What Most People Get Wrong About Michaels
A lot of people think Michaels is just a middle-man for brands like Sharpie or Wilton. That’s actually a misconception. A massive chunk of their profit comes from their exclusive private brands. You probably recognize them:
💡 You might also like: W-9 Form 2025 Fillable: What Most People Get Wrong
- Recollections (Scrapbooking)
- Loops & Threads (Yarn)
- Artist's Loft (Paints and brushes)
- Ashland (Home decor)
By manufacturing these through their own subsidiary, Artistree, they bypass the markups other retailers have to pay. It’s the "Trader Joe’s" model but for googly eyes and canvases.
The "Respect the Handmade" Movement
The newest frontier for The Michaels Companies Inc is MakerPlace. If you’re an artist, you know Etsy has become a bit of a nightmare with high fees and "handmade" items that are actually mass-produced in factories.
Michaels is positioning MakerPlace as the "clean" alternative. They’re even piloting "in-store selling," where local makers can actually set up shop inside a Michaels location to sell their finished goods. It’s a smart way to drive foot traffic. You come in for a glue gun and leave with a hand-thrown ceramic mug made by someone in your zip code.
Looking Ahead: The 2026 Strategy
What’s next? They aren't slowing down. The company is committed to opening about 20 new stores a year, mostly in smaller "neighborhood" formats. They’ve also identified something they call "Emotional Support Crafts."
📖 Related: Converting Indonesian Rupiah to PHP: What the Currency Apps Don't Tell You
Basically, people are stressed out. Michaels is betting that "repetitive, meditative" hobbies like diamond painting and tufting are going to stay popular because they’re a digital detox. They’re moving away from the "grandma’s hobby" image and leaning hard into the TikTok-fueled DIY culture.
Actionable Insights for Creators and Investors:
- For Sellers: If you’re tired of Etsy fees, look into MakerPlace. The integration with physical Michaels stores for "Earn while you Learn" classes is a unique revenue stream others can't match.
- For Shoppers: Watch for the Big Twist and Joann legacy brands to hit Michaels shelves fully by late 2026. The selection of apparel-grade fabric is expected to expand significantly.
- For Business Observers: Keep an eye on their supply chain shift. They are aggressively moving production out of China toward "low-tariff" nations to keep costs down amidst ongoing trade tensions.
The Michaels Companies Inc isn't just surviving the "retail apocalypse"—they're redesigning the whole category by becoming a tech-heavy, service-oriented hub for the 52 million people who shop there every year.