Michaels picks up the slack for bankrupt Party City

Searches for party supplies on Michaels.com have surged 155% since the beginning of the year. Now the arts and crafts store is expanding its selection of balloons, decor, and accessories to meet demand.

• Over this same period, one-time category killer Party City shuttered all 700 of its stores as part of its second bankruptcy in as many years. Now discounters such as Dollar Tree and Family Dollar are buying up former locations and depriving many a shopping strip of its one-stop shop for party supplies.

But the party isn’t over for this important category. Michaels is picking up the slack with 500 new party-related products, marking a 200% increase in its party (product) mix.

“With the expansion of our balloon offerings and party supplies, along with enhanced in-store events and personalized birthday party add-ons, we’re making it easier than ever for families and friends to come together, celebrate, and express their creativity,” Stacey Shively, chief merchandising officer at Michaels, said in a statement.

Michaels is also expanding its balloon offerings—another area where Party City distinguished itself among competitors—following a 150% increase in searches for balloons in 2025. The expanded assortment includes 300 new balloon options, including pre-made balloon bouquets for events such as graduations.

Bringing the party in-store: The company is also continuing its expansion into party planning itself. In 2024, Michaels hosted 5,000 parties serving 42,000 kids across the US and Canada.

Michaels released its first-ever trend report last month, which showed that customers are seeking connection and community through crafting. It will also offer additional party add-ons such as goody bags, slime, pizza/drinks, and balloon bouquets.

“Crafting is no longer just a hobby—it’s self-care, a way to connect with friends, personalize your space, and even save money," Mandi Clark, director of trend and design at Michaels, said in a statement.

Michaels’s pivot into party supplies comes as specialized retailers have struggled to stay relevant. Rival Joann Fabrics recently declared bankruptcy amid declining sales and inventory issues that led to shortages and the permanent loss of some items.