The Michaels Companies Explained

The Michaels Companies, Inc.
Type:Private
Foundation: [1]
Founder:Michael J. Dupey
Location:Irving, Texas, U.S.
Num Locations:1,252 (US, Canada) (January 2021)
Services:Merchandise for makers and do-it-yourself home decorators
Key People:Ashley Buchanan (CEO)[2]
Revenue: US$5.271 billion (2020)[3]
Operating Income: US$533.54 million (2020)
Profit: US$294.9 million (2020)
Assets: US$4.528 billion (2020)
Equity: US$ billion (2020)
Num Employees:45,000 (2019)
Website:The Michaels Companies

The Michaels Companies is an American retail holding company, headquartered in Irving, Texas. It was formed as a parent company of Michaels in 2014., The Michaels Companies operates its flagship brand, Michaels (in the United States and Canada), and Artistree, a manufacturer of custom and specialty framing merchandise. There are over 1,252 arts and crafts stores located in the United States and Canada.

History

The Michaels Companies debuted in June 2014 on the NASDAQ under the symbol MIK and raised about $472 million in its initial public offering, using the funds to pay down debt.[4] The IPO valued the company at $3.45 billion.[5] [6] In April 2015, Rubin was named chairman, in addition to his title of CEO. In August 2015, Michaels announced a partnership with online DIY craft design and video company Darby Smart aimed at "making crafting simpler and more accessible."[7] In February 2016, the Michaels Companies inc. completed the acquisition of Lamrite West, Inc., which included an international wholesale business under the Darice brand name ("Darice") and 36 arts and crafts retail stores located primarily in the Midwest under the Pat Catan's brand name.[7] In August, The Michaels Companies acquired Hancock Fabrics' intellectual property and customer database as part of its bankruptcy and liquidation.[8] In June 2017, The Michaels Companies became a Fortune 500 company.[9] In Fall, Michaels launched a relationship with Elizabeth Jean "Busy" Philipps in fall 2017, resulting in a digital video series called The Make Off, in which Busy competes in a crafting competition against other celebrities. In 2018, The Make Off series was nominated for a Webby Award. That year the company also embarked on media partnerships with Good Morning America and Nickelodeon around the concept of promoting screen-free activities for children and teens. In March 2018, the Michaels companies announced its partnership with TV design personalities Drew and Jonathan Scott of HGTV's Property Brothers for a custom frame collection.[10] In January 2019, the Michaels companies announced the closure of the Pat Catan Stores, a dozen or more of which were to be reopened under the Michaels Stores name.[11] In November 2019, The Michaels Companies, Inc. announced that they would reopen up to 40 A.C. Moore stores after its bankruptcy and liquidation.[12] In October 2019, Mark Cosby was named CEO of the Michaels Companies after being named interim CEO in February 2019.[13] In November 2019, The Michaels Companies, Inc. announced that they would reopen up to 40 A.C. Moore stores as Michaels stores after A.C. Moore's bankruptcy and liquidation.[14] In January 2020, former Walmart merchandising executive Ashley Buchanan joined The Michaels Companies as the chief executive officer and a member of the board of directors.[15] In July, the company downsized its headquarters but remained in Irving, Texas.[16] On March 3, 2021, The Michaels Companies management agreed to be acquired by venture capital firm Apollo Global Management for $22 per share, or $3.3 billion, and the company was to be taken private.[17] In April, Apollo announced in a press release that the acquisition was completed.[18] The Michaels Companies owns Artistree, a vertically integrated custom framing business that manufactures precut mats and framing merchandise for Michaels Stores and online ordering. Custom framing orders are processed and shipped to a Michaels store where the frame is assembled and picked up by the customer.

External links

Notes and References

  1. Web site: Michaels I.P.O. Prices at $17, at Low End of Range. Alden. William. June 26, 2014. The New York Times. January 17, 2019.
  2. Web site: Michaels Company Profile. fortune.com. 13 June 2018. 2022-01-22.
  3. Web site: Form 10-K Michaels Companies, Inc.. sec.report. March 9, 2021. March 7, 2022.
  4. Web site: Michaels I.P.O. Prices at $17, at Low End of Range. Alden. William. June 26, 2014. The New York Times. January 17, 2019.
  5. Web site: Crafts retailer Michaels raises $473 million in IPO . Reuters . June 26, 2014 . May 18, 2021.
  6. Web site: The Michaels Companies, Inc. LEI 549300H9LWMBP7HYLR98 . LEI . June 12, 2014. May 18, 2021.
  7. Web site: Sciacca . Annie . S.F.-based DIY startup lands partnership with craft retail giant . San Francisco Business Times . January 17, 2019 . August 20, 2015.
  8. Web site: Michaels buys Hancock Fabrics brand. Urbanski. Al. August 4, 2016. chainstoreage.com. Eagle Operating Corp.. January 16, 2019.
  9. Web site: Tesla and 19 Companies Join the Fortune 500 for the First Time. Wieczner. Jenn. June 7, 2017. Fortune. January 16, 2019.
  10. Web site: Halkias . Maria . Arts and crafts retailer Michaels partners with HGTV's Property Brothers to boost framing business . DallasNews.com . Dallas Morning News, Inc. . January 14, 2019 . March 1, 2018.
  11. Web site: Michaels doing away with Pat Catan's stores . The Post . February 16, 2019 . May 18, 2021.
  12. News: A.C. Moore closing all stores, up to 40 locations set to become Michaels. Kelly. Tyko. USA Today. McLean, Virginia. November 25, 2019. November 25, 2019.
  13. Web site: Michaels names interim leader to CEO spot. Ayers. Rebecca. October 22, 2019. Dallas Business Journal. November 15, 2019.
  14. Web site: All 145 A.C. Moore stores will shut down, but a small handful will become Michaels locations . Business Insider . November 26, 2019 . May 18, 2021.
  15. Web site: Ell. Kellie. 2019-12-27. Arts and Crafts Company Michaels Taps Walmart Exec. March 17, 2021. WWD. en-US. 2021-03-04. https://web.archive.org/web/20210304080406/https://wwd.com/fashion-news/fashion-scoops/ashley-buchanan-leaves-walmart-for-michaels-companies-1203407501/. live.
  16. Web site: Michaels Stays in Irving With HQ Move . GlobeST . July 28, 2020 . May 18, 2021.
  17. Web site: Thomas . Lauren . Crafts retailer Michaels will go private in $3.3 billion deal with Apollo Global . CNBC . March 3, 2021 . March 3, 2021.
  18. Web site: Apollo Announces Completion of the Tender Offer for Shares of The Michaels Companies . Yahoo . April 15, 2021 . May 18, 2021.