Michaels Buys Hancock Fabrics' Brand, Intellectual Property
Michaels has purchased the rights to former competitor Hancock Fabrics' brand, patents and trademarks from U.S. Bankruptcy Court for $1.3 million. Michaels Stores Inc, which is based in Texas, bought the rights to Hancock's brand, patents and trademarks from U.S. Bankruptcy Court in Delaware for $1.3 million. The deal also includes all the customer information Hancock had collected from more than 10 million customers. In February of 2016, Hancock Fabrics filed for bankruptcy and in April announced it was closing all of its remaining locations.
Total Retail's Take: Another step in the right direction for Michaels. In addition to celebrity product partnerships, the acquisition will help the crafts retailer get a leg up on the competition. Michaels operates about 1,300 locations, making it the largest craft retailer in the U.S. Primarily focusing on smaller craft forms, Michael's is hoping to get into the sewing market. This acquisition of Hancock's customer data is critical to that initiative.