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# Michaels CEO Says Capitalizing on Party City and Joann Bankruptcies Was Priority No. 1
- URL: https://www.dbbnwa.com/michaels-ceo-says-capitalizing-on-party-city-and-joann-bankruptcies-was-priority-no-1/
- Published: 2026-01-21T22:00:55.000Z
- Updated: 2026-01-21T22:00:54.000Z
- Description: Michaels is aggressively targeting the market share left by Party City and Joann bankruptcies, expanding party and fabric offerings across its store network under CEO David Boone’s strategy.
- Author: Staff Report
- Tags: Leadership, Merchandising, Supply Chain

### Craft Retailer Seizes Market Share Amid Competitor Exits

Michaels, the leading arts and crafts retail chain, is strategically [positioning itself to capture market share](https://www.retaildive.com/news/michaels-ceo-taking-party-city-joann-bankruptcy-market-share/809907/?ref=dbbnwa.com) left open by the bankruptcies of Party City and Joann, its CEO David Boone said at a recent investor conference. Boone, who took the helm of Michaels about a year ago, described the company’s push into party supplies and fabric categories as a key driver of recent growth.

### Accelerated Expansion into Party and Fabric Categories

With both Party City and Joann having exited the U.S. retail landscape during financial distress, significant gaps emerged in specialty segments — from party supplies to sewing and fabrics. In response, Michaels introduced two new in‑store concepts, The Party Shop and The Knit & Sew Shop, across its entire fleet, aiming to attract customers seeking alternatives after the closures.

Boone noted that the disappearance of these competitors created what the company viewed as a “tremendous disruption in the marketplace,” and securing those customers became “job one” for the executive team. In the past six to seven months, Michaels has built dedicated balloon bars, expanded SKUs in party products, and grown its fabric assortment significantly — with plans to continue scaling these offerings.

### Leveraging Acquired Brands and Expanding Assortment

Michaels also acquired Joann’s intellectual property and private‑label brands following the latter’s liquidation of stores, which has helped deepen its fabric and yarn selection both in stores and online. [Boone highlighted](https://www.modernretail.co/operations/michaels-transforms-its-stores-to-fill-voids-left-by-joann-and-party-city/?ref=dbbnwa.com) that Michaels now reaches more customers with these expanded categories than Joann did at the time of its closure.

Despite this aggressive expansion, Boone pointed out that awareness of Michaels as a destination for party supplies remains a work in progress — though it has grown substantially since the rollout began. The company believes there is still room to capture additional share as shoppers adjust to the new retail landscape.

### A Broader Play in a Shifting Retail Environment

Michaels’ push comes amid a broader backdrop of retail contraction, where bankruptcies and store closures have reshaped consumers’ shopping options across categories. With [Party City shuttering](https://www.credaily.com/briefs/party-city-going-bankrupt-shuttering-over-700-stores/?ref=dbbnwa.com) most of its U.S. stores and [Joann’s complete exit](https://www.abc10.com/article/news/nation-world/joann-fabrics-store-closing-list-2025/507-dabec3ce-f13b-4472-9309-136e314c2df4?ref=dbbnwa.com) in 2025, Michaels’ moves reflect a broader trend of survivors repositioning themselves to meet evolving demand.

Looking ahead, Michaels plans to refine its product assortments and enhance its in‑store experience, prioritizing innovation and community engagement to solidify its position as the go‑to destination for crafting, celebrations, and seasonal needs.

### More about Joann and Michaels:

[Joann Comes Unglued: Arts and Crafts Market in FluxWalmart, Amazon compete with Hobby Lobby, other specialty chains for Joann’s market share![](https://storage.ghost.io/c/bd/58/bd58ba83-294a-4fa0-8fcc-549ac00a224c/content/images/icon/DBB_Logo_Icon_Primary-202.png)Doing Business in BentonvilleDan Craft![](https://storage.ghost.io/c/bd/58/bd58ba83-294a-4fa0-8fcc-549ac00a224c/content/images/thumbnail/arts-adn-crafts.jpeg)](https://www.dbbnwa.com/articles/joann-comes-unglued-arts-and-crafts-market-in-flux/)

[Michaels Boosts Creativity and Celebration with New In-Store ShopsMichaels introduces new shop-in-shops for sewing, knitting, and party supplies, enhancing customer experience and product offerings following strategic acquisitions and market shifts.![](https://storage.ghost.io/c/bd/58/bd58ba83-294a-4fa0-8fcc-549ac00a224c/content/images/icon/DBB_Logo_Icon_Primary-203.png)Doing Business in BentonvilleStaff Report![](https://storage.ghost.io/c/bd/58/bd58ba83-294a-4fa0-8fcc-549ac00a224c/content/images/thumbnail/thumbnail-5.jpeg)](https://www.dbbnwa.com/articles/michaels-expands-with-new-knit-sew-and-party-shops/)

[Michaels Eyes Market Expansion with Acquisition of Joann Brands, IPRetailers positioning as primary destination for former Joann customers![](https://storage.ghost.io/c/bd/58/bd58ba83-294a-4fa0-8fcc-549ac00a224c/content/images/icon/DBB_Logo_Icon_Primary-204.png)Doing Business in BentonvilleDan Craft![](https://storage.ghost.io/c/bd/58/bd58ba83-294a-4fa0-8fcc-549ac00a224c/content/images/thumbnail/Micheals-buys-Joann.jpeg)](https://www.dbbnwa.com/articles/michaels-eyes-market-expansion-with-acquisition-of-joann-brands-ip/)