For kids, birthday parties are the most important events of the year, and hosting one can be one of their most highly anticipated life moments.
As we grow older, some of us might want to forget about our birthdays. But reminiscing over past parties can bring back some of the best memories of our childhoods.
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When we — or should we say our parents — planned our birthday parties, everyone knew Party City and Joann were the “it” stores where we could shop for all party and crafting necessities.
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There was always something exciting about entering the huge superstores and perusing the wide aisles to find various items from every theme imaginable. However, this feeling will soon be long gone as both of these iconic brands have begun permanently closing their doors nationwide.
Party City files for bankruptcy.
Image source: Shutterstock
Party giants file for Chapter 11 bankruptcy and shut down multiple stores
The iconic party retailer Party City filed for Chapter 11 bankruptcy protection for the second time in December 2024, only 14 months after emerging from its first bankruptcy filing. At the time of the second filing, the retailer operated around 700 stores that were shut down, and now only 29 are left across eight states.
Joann, a leading sewing and crafts retail chain, is another victim of the bankruptcy trend, having filed for Chapter 11 bankruptcy twice within the last year.
The crafts retailer first filed for bankruptcy in March 2024 and emerged from it after going private, but 10 months later, it filed for a second time, shutting down all operations and closing around 500 stores.
Michaels sees a gap in the market and takes immediate action to fill it
Into the gap left by leading companies like Party City PRTY and Joann has stepped the arts and crafts retail chain Michaels (MIK) , which has taken advantage of market share opportunities by investing in the party sector.
Michaels entered the sector last year by introducing party and class services at various locations nationwide to enhance its in-store experience and increase foot traffic. These services allow adults and children to celebrate birthday parties or take arts and crafts classes to develop and learn a new skill.
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This month, Michaels announced the expansion of its balloon and party supply offerings in another effort to further dominate the space. It also increased its in-store experiences by offering customers more ways to celebrate.
The retailer is adding 300 new balloon options across more categories and introducing premade balloon bouquets, which can be purchased online or in person for in-store pickup or delivery.
As for its in-store experiences, Michaels is adding new birthday party themes, increasing party add-on options, and reimagining events by offering new monthly, seasonal, and private events.
“Since the beginning of the year, searches for party supplies on Michaels.com are up 155%. As a result, stores and online will be expanding its selection of party supplies by 200% beginning in August, adding over 500 total new products across paper party, accessories, and décor,” wrote Michaels in the announcement.
Michaels had its eye on party expansion for years
Entering the party supplies and crafting market seems to have been on Michaels’ radar for a while. The retailer tried acquiring Party City during its bankruptcy auction in February but was outbid by New Amscan, an affiliate of Ad Populum, which ended up taking over the company’s intellectual property and wholesale operations.
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However, the company has now set its sights on becoming the new party giant, and it is making all efforts and investments to achieve this goal.
“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,” said Michaels Chief Merchandising Officer Stacey Shively.
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