Apr 15, 2025 - Business

Michaels expands into party space after Party City's exit

Kelly Tyko

Michaels sign to the right of a building that says Michaels on it — Michaels is expanding Its party supplies selection and will offer more helium balloons. Photo: Kevin Carter/Getty Images

Michaels is making a play for the territory left by Party City's recent store closings by expanding into the party supply space.

Why it matters: The exit of Party City after nearly 40 years in business can be a boon for competitors.

Driving the news: Michaels, the Texas-based arts and crafts retailer, announced Tuesday that it will expand balloons and party supplies and enhance "in-store experiences for birthday parties and private events."

Zoom in: The retailer said in a news release that it will expand party supplies by 200% beginning in August in stores and online, adding more than 500 products across paper party, accessories and décor.

Stores have started adding 300 balloon options and offering premade balloon bouquets.
Balloons can also be purchased online and picked up or ordered through Instacart and DoorDash for delivery.

Between the lines: New Amscan, an affiliate of Ad Populum, a global marketer of pop culture goods and costumes, was the winning bidder for the Party City brand and company's wholesale division.

Michaels was listed as the backup bidder for Party City's intellectual property, according to bankruptcy court documents.

The bottom line: Michaels has been opportunistic. The company is also expanding its fabric assortment as bankrupt Joann prepares to close its stores.

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Michaels expands into party space after Party City's exit

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