Legal Lessons from Joann’s IP Sale to Michaels

By: Timothy O’Neill, Partner

When Joann Fabrics announced its bankruptcy earlier this year, many believed it marked the end of a cherished brand. But thanks to the power of intellectual property (IP), Joann’s private labels, including its well-known “Big Twist” yarn, have found new life at Michaels.

Michaels recently acquired Joann’s IP and private label brands as part of its strategy to expand its fabric and craft portfolio. While the financial terms weren’t disclosed, the deal underscores a crucial business truth: your brand can outlive your business if it’s legally protected.

This sale offers a few key takeaways for business owners:

IP is an asset. Trademarks, private labels, and brand names can retain or even increase in value, even when a company faces financial trouble.

Protect early, not late. Registering and managing your IP from the start ensures it can be sold, licensed, or transferred later without legal issues.

Bankruptcy isn’t the end. In Chapter 11, IP can be a key part of restructuring or sale negotiations, sometimes providing the best return for creditors.

Whether you’re building a brand or acquiring distressed assets, having a business attorney guide your IP strategy is essential. At Pike & Lustig, LLP, we help businesses not only grow but also preserve value at every stage of business. With offices throughout South Florida, including Wellington, West Palm Beach, and Miami, our experienced attorneys are here to support businesses when they need us most.