Michaels Stores
Arts and crafts retailer for makers and creators.
PE-OWNED
Acquired by Bain Capital2006-06-01
What Made It Great
Where creativity happens - supplies for every craft project.
What PE Will Likely Do
Michaels Stores will likely experience a significant reduction in the quality and selection of craft supplies and materials as the company cuts costs to increase profitability for the PE firm
Michaels Stores will likely close a significant number of underperforming stores, leading to reduced accessibility and convenience for customers
The in-store experience at Michaels Stores will likely deteriorate, with less investment in store maintenance, renovations, and customer service
Expected Timeline
“0 to 6 months months”
Announcements about 'cost optimization' and 'operational improvements' at Michaels Stores
“6 to 12 months months”
First round of store closures and staff reductions announced, leading to longer wait times and fewer customer service staff
“12 to 24 months months”
Noticeable decline in the quality and selection of craft supplies, including fewer high-end and specialty items, as the company cuts inventory to improve cash flow
“24 to 48 months months”
Increasing number of store closures, deteriorating in-store experience due to deferred maintenance and renovations, and rumors of potential bankruptcy or restructuring
“48 to 60 months months”
Potential bankruptcy, restructuring, or fire sale of Michaels Stores assets
What You Can Do
Actions
Be prepared for a potential decline in the quality and selection of craft supplies and materials at Michaels Stores
Monitor for store closures in your local area and plan accordingly for reduced accessibility
Consider supporting local, independent craft stores that may offer a better in-store experience and selection
Alternatives
Look for family-owned or employee-owned businesses