Michaels Going Out of Business? Retail Blackouts Explained in 2026

Michaels going out of business has been a hot topic after reports of nationwide store closures and temporary retail blackouts. With 1,100 stores affected across 49 states, customers and employees are concerned. Many wonder if these closures are permanent or just short-term operational moves. The company is also transforming its stores to fill gaps left by competitors like Joann and Party City. This article explains the real story behind Michaels and what it means for shoppers.

Michaels: Creative Evolution Timeline (1973–2026)

Michaels is the biggest arts, crafts, and framing store in North America. In 2026, the company is changing its business style by moving from only physical stores to a more connected online and creator-focused platform. It is also growing its market share as it competes with stores like Hobby Lobby.

Key Strategic Milestones

• 1973 (Founding): Michael J. Dupey transforms a struggling Ben Franklin store in Dallas, Texas, into the first Michaels arts and crafts outlet.
• 1982 (Expansion Phase): Dallas businessman Sam Wyly acquires a controlling interest, growing the chain from 11 stores into a regional leader.
• 1984 (Public Launch): The company goes public on the NASDAQ, securing the capital needed to expand across the United States.
• 1994–1995 (Market Dominance): Michaels acquires the 101-unit Leewards Creative Crafts and Aaron Brothers, solidifying its lead in custom framing.
• 2006 (Private Equity I): Bain Capital and The Blackstone Group take the company private in a massive $6 billion leveraged buyout.
• 2014 (Second IPO): The Michaels Companies, Inc. returns to the public market to fund digital investments and supply chain upgrades.
• 2021 (Apollo Acquisition): Apollo Global Management acquires Michaels for $5 billion, taking it private again to accelerate an omnichannel “digital-first” strategy.
• 2023–2024 (MakerPlace Rollout): The brand launches “Michaels MakerPlace,” a direct competitor to Etsy, allowing independent creators to sell handmade goods.
• 2025 (Competitor Vacuum): Michaels acquires the intellectual property and private labels of JOANN (including Big Twist yarn) after its rival liquidates.
• 2026 (New Leadership): David Boone takes over as CEO, overseeing the rollout of new “Fabric Shop” and “Balloons” sections in 1,300+ locations.

Michaels Going Out of Business: What’s Really Happening?

Michaels is not going out of business and remains strong in the craft market in 2026. While competitors like Joann and Party City have closed stores, Michaels has managed its debt well to stay stable.

The company’s sales have bounced back to around $5.27 billion as it attracts more customers. Instead of shutting down, Michaels is expanding its product range to become a one-stop shop, though some stores may relocate like the Old Navy.

How Many Michaels Stores Are Closing Nationwide?

Nationwide, Michaels is not closing a large number of stores and still runs about 1,400 locations across the U.S. and Canada. The company is only shutting down a few older, oversized stores while opening around 30 new smaller stores each year.

These new stores are about half the size, making it easier to open in busy urban areas. By the end of 2026, the total number of stores is expected to stay the same or slightly grow. This plan helps Michaels stay accessible to customers while lowering high property costs.

Why People Think Michaels Is Shutting Down?

Many people think Michaels is closing because of posts on Reddit, especially in the r/MichaelsEmployees group, where workers talk about reduced hours and payroll cuts. Some users compare this to the final days of Joann, which creates worry among readers. Others mention empty shelves and slow restocking, but experts say this is just better inventory control.

News in 2025 about Apollo Global Management possibly selling the company or launching an IPO also confused people. All these things together spread rumors of bankruptcy, even though there is no real proof in the company’s financial reports.

Temporary Retail Blackouts and Store Closures Explained

In 2026, Michaels is using “strategic blackouts,” which are short-term closures for store upgrades, not permanent shutdowns. These usually last a few days and help install new sections like “Knit & Sew” and “Party Shop.” Some stores may also close for a short time due to lease changes or moving to a smaller space in the same area.

Many people think these are permanent closures, but they are actually part of store improvements. This is all part of the company’s “Project 50” plan to upgrade the shopping experience.

Opportunities From Joann and Party City Store Closures

The closure of Joann and Party City in 2025 gave Michaels a big chance to grow in the market. Michaels bought Joann’s brands, including Big Twist yarn, to attract its customers. It also launched “The Party Shop” with balloon services and around 700 new party items. This move helped Michaels gain a large share of the market that was once split between these brands. Now, it has become a main place for both craft lovers and party planners.

Employee Reactions to Michaels’ Store Shutdowns

Employee reactions are mixed, as many workers feel stressed by fast store changes with limited staff. While Michaels is not closing many stores, changes in job roles have made some long-time employees feel undervalued.

On internal forums, staff say new services like balloon bouquets take time away from regular tasks like stocking shelves. However, some managers see more customers coming in, especially after Joann closed. Overall, employees feel pressure as the company moves quickly to adjust and grow.

How Michaels Is Transforming Its Stores Across the U.S?

In 2026, Michaels is changing its stores using a “Shop-in-Shop” idea, where old craft aisles are turned into small themed sections. Two main areas, “The Knit & Sew Shop” and “The Party Shop,” now take up about one-fourth of each store.

The company is also adding “Charm Bars” and “Patch Bars” to attract younger Gen Z shoppers who like customizing items. Stores now also have new digital kiosks that help customers see custom framing ideas and find products easily. These updates are meant to turn Michaels from a basic craft store into a creative lifestyle place.

Impact on Customers and Communities

In many areas, Michaels is now the only physical store where people can see and touch items like fabric and yarn before buying. This has made a stronger connection with local “Maker” communities, with more in-store events and craft nights than before.

Some customers miss the larger variety from old specialty stores, but most are happy to still have a nearby place for basic supplies without waiting for delivery. The addition of party items also helps parents since Party City is no longer available in many places. Overall, Michaels is helping keep hands-on hobbies alive in today’s digital world.

Michaels’ Strategy to Expand in the Craft Retail Market

Michaels is growing through a “Multi-Channel Growth” plan that connects its physical stores with an online marketplace called “MakerPlace” for independent creators. The company is also focusing on “kid-ult” products, which are high-quality crafts made for adults, so it does not depend only on holiday sales.

It is investing $150 million to improve its supply chain and keep popular items in stock. Michaels also uses smart technology to suggest products, which helps customers buy more in one visit. This approach helps the company spot new craft trends early and stay ahead in the market.

Michaels Going Out of Business 2025

In 2025, there were rumors that Michaels might be closing because its competitor JOANN shut down. But Michaels did not go out of business and instead used this chance to grow stronger in the market. The company also added new product lines and improved stores to attract more customers. Overall, Michaels stayed active and focused on expanding its business instead of closing.

Michaels Going Out of Business 2024

In 2024, some people thought Michaels might close because of debt and restructuring news. But the company cleared these doubts by improving its business strategy and launching new services. They also focused on online growth and closed only a few weak stores. So, Michaels continued its operations without any major shutdown in 2024.

Is Michaels Going Out of Business in California?

Michaels is not going out of business in California and still runs many stores there. The company remains strong in the state and continues serving a large customer base. Some small changes happened like closing a few expensive locations. But overall, Michaels is fully active in California with stable operations.

Is Michaels Going Out of Business in 2023?

In 2023, many rumors started because other big retail stores were closing. However, Michaels clearly stated that its business was stable and not in danger. The company focused on marketing and customer loyalty programs during this time. So, Michaels stayed strong and did not face any shutdown in 2023.

Is Michaels Going Out of Business in Canada?

Michaels Canada is still operating and has no plans to shut down. The brand is expanding its services with creative workshops and in-store experiences. Some store locations may shift due to costs, but the business continues smoothly. Overall, Michaels remains a leading craft retailer in Canada.

My Research about The Michaels

As you know I am the founder of Bizlixo where I shared the business status and market insights to help people understand real-time industry trends. In my research about Michaels, I found that it is a leading arts and crafts retail chain with a strong presence in North America.

The company focuses on creative supplies, seasonal products, and in-store shopping experience to attract customers. Overall, Michaels is performing steadily in the market but faces strong competition from online craft and hobby retailers.

Final Remarks

In conclusion, rumors about Michaels going out of business are misleading. The company faced some temporary store closures and challenges, but it is not shutting down. Instead, Michaels is improving its stores, growing its market, and using opportunities from competitor closures. Customers can still shop both in-store and online, and the brand remains a strong and stable player in arts and crafts retail like the The Shane Company.

FAQs