Michaels Adds Party Supplies and Fabric After Party City and Joann Liquidate

Michaels Stores expanded into party supplies and fabrics after Party City and Joann Fabrics liquidated last year. Fortune reported that the retailer built party supply spaces at its 1,400 stores, established a helium supply chain, installed balloon-filling equipment, and trained staff on its use.

It also began selling more fabric at 1,000 locations after purchasing JoAnn’s intellectual property and store brands at a bankruptcy auction.

David Boone, who became CEO in February 2025, directed the inventory shifts. The 57-year-old previously served as CEO of Staples Canada and held senior roles at grocer Loblaws and TD Bank. Fortune reported that Apollo Global Management owns Michaels, allowing decisions without public market scrutiny.

Michaels reported double-digit growth in first-quarter sales and adjusted earnings, according to Bloomberg data cited by Fortune. The company had kept annual revenue near $5 billion for a decade, trailing Hobby Lobby by roughly $1 billion in yearly sales. Both Joann and Party City operated as $2 billion businesses before their closures.

Apollo acquired Michaels in a $5 billion deal in 2021. Boone said the retailer is shifting capital toward store experience after earlier focus on digital infrastructure. He noted that regional managers now adjust local selections, such as bachelorette items in Nashville and horse-themed products in Calgary.

Boone stated that Apollo has owned Michaels for five years and may seek an exit, though the company’s priority remains customer experience. He added that ownership structure matters less than operations, as customers do not track who owns the retailer.