• by Sarah Mahoney , September 25, 2025

With Joann loyalists still mourning the loss of its Mothership, and party planners still scrambling to find banners and balloons, Michaels isn’t wasting any time. The retailer just announced two new in-store experiences: The Knit & Sew Shop and The Party Shop at Michaels.

With expanded assortments and services, these go a long way toward addressing gaping holes in the landscape for crafty consumers, following the bankruptcy and liquidation of both Joann and Party City earlier this year.

In June, Michaels acquired the intellectual property and private label brands of Joann, including Big Twist, an affordable yarn brand that thrifty knitters covet.

"The launch of The Knit & Sew Shop and The Party Shop at Michaels is a transformative step forward on our mission to become the go-to destination for fueling creativity and celebration," said David Boone, CEO, in the announcement. "We are proud to offer an unmatched experience for creating and celebrating through our expansive product assortments, enhanced services, lower price points, and seamless in-store and online shopping options."

While “yarn wars” won’t mean much to the uninitiated, both Michaels and Joann have ferocious defenders. (If you want your newsfeed to get really wacky, tack on the Hobby Lobby fan club.) Collectively, crafters are committed to arguing about everything from thread quality to better coupon codes.

However, as is true with many mall-based retailers, crafts are a brutally competitive business, and one that is especially threatened by looming tariffs. Michaels, based in Irving, Texas, has also experienced numerous operational crises. In 2021, it was taken private by Apollo, and since then, it has gone through multiple rounds of downsizing.

The new Knit & Sew Shops are available in all stores and carry both the Joann and Michaels logos.

The retailer has also added fabric sales to more than 800 stores and expanded online options. It is now stocking the sought-after Gütermann threads and adding sewing machines from Singer and Brother. Plans also call for the installation of fabric-cutting tables in 650 stores next month.

And while Party City closed its doors earlier this year, Michaels is celebrating, with custom balloon bundles and grab-and-go options. A dedicated Balloon Bar in each location sells latex and foil balloons, with balloon bouquets starting at $10.

It even offers a “Reserve a Time” feature, allowing customers to order ahead.

Meanwhile, the retailer continues to look for ways to build on the craftmania ignited by COVID, more than doubling the assortment of Guided Craft projects. These focus on “gateway crafting,” a type of beginner-friendly activity that is less intimidating. Popular selections include diamond art, paint-by-number, canvas painting, and diorama kits, as well as amigurumi, theJapanese art of making small yarn creatures. 

The announcements come as the retailer gears up for the fourth quarter, when Halloween, Thanksgiving, and winter holidays create the chain’s busiest period. The company recently announced that it is hiring an additional 10,000 seasonal associates.