Michaels Turns Party City and Joann Bankruptcies into Growth Engine

Michaels is filling the market void left by the collapses of Party City and Joann Fabrics, turning two rivals' bankruptcies into its own growth engine.

Rapid Market Penetration and New Product Lines

Michaels quickly deployed party supply sections across its 1,400 stores and expanded fabric sales in 1,000 locations, effectively occupying the space abandoned by its competitors. The retailer built a helium supply chain, installed balloon‑filling equipment, and trained staff to operate it.

■Established a helium supply chain

■Integrated balloon‑filling equipment into stores

■Expanded fabric assortment across 1,000 outlets

Operational Agility and Governance Freedom

CEO David Boone (57) took the helm in February 2025 and emphasized the “just a phone call away” decision‑making speed enabled by Apollo Global Management ownership. This structural freedom bypasses the lengthy approval processes typical of publicly listed companies, allowing swift strategic moves.

■Apollo’s private‑equity model eliminates board approvals

■The board is effectively a phone call away for rapid decisions

■David Boone’s background: former Staples Canada CEO, senior roles at Loblaws and TD Bank

Financial Performance and Growth Outlook

According to media reports, Michaels posted double‑digit percentage growth in both sales and adjusted earnings in the first quarter. The retailer, whose revenue had been stuck around $5 billion annually, aims to revive that figure with its new strategy. Compared with the $2 billion annual businesses of Joann and Party City, Michaels expects to capture a sizable share of those markets.

■First‑quarter double‑digit growth

■$5 billion steady annual revenue, now targeted for uplift

■Goal to increase share of $2 billion market segments

Future: IPO Prospects and Competitive Dynamics

As Apollo approaches its typical seven‑year exit horizon, a potential IPO for Michaels is under consideration. However, management stresses that the primary focus remains on delivering the best customer experience, with ownership structure taking a back seat. This stance may reshape competition with rival Hobby Lobby, which also remains privately held.

■IPO possibility balanced against long‑term operational focus

■Customer experience prioritized over ownership narrative

■Competition with Hobby Lobby will evolve through new store concepts

Gökberk Uçar – Michaels’ rapid expansion strategy underscores the importance of flexible supply‑chain management in retail logistics. Integrating niche items such as helium and balloon‑filling equipment into brick‑and‑mortar locations not only accelerates inventory turnover but also improves margin profiles. The private‑equity‑driven speed of decision‑making provides a clear operational edge over peers. This model could serve as a blueprint for similarly sized retailers, provided that sustainable growth hinges on a harmonious blend of digital and physical channels.