I did a research paper last year on Michael's, JoAnn's and Hancocks for my accounting class.
JoAnn's diversified to keep going when sewing became less popular. They are not eliminating their fabric lines, just adding more ways to pull people into the stores. Michael's has not been involved in fabric. Hancocks declared bankruptcy but is making a comeback by increasing their quilting lines of fabric and home decor.
None of the above stores were related to WalMart as of 2007.