Crafts retailer Michaels closing Pat Catan's not long after buying smaller chain
Nearly three years after buying regional arts and crafts retailer Pat Catan's for $150 million, Michaels is closing all of the brand's 36 stores in Ohio, Pennsylvania, Michigan and West Virginia.
"The Pat Catan's retail business has struggled in the face of industry headwinds," Chuck Rubin, chairman and CEO of the Michaels Companies, stated Wednesday in a news release.
Those headwinds have led a slew of retailers to close shop, including kids' clothing chain Gymboree's bankruptcy filing earlier this month and plans to close more than 800 stores.
Michaels intends to reopen up to 12 of the closed stores under its own name later in the year.
"So far in January, we have seen more volatility in consumer shopping behavior than we initially expected," Rubin added.
Michaels lowered its fourth-quarter outlook for same-store sales. It also estimated profit would come in near the lower end of previous guidance. The company plans to report fourth-quarter and fiscal 2018 earnings on March 19.
Michaels is the biggest arts and crafts retailer in North America with 1,200 stores in 49 states and Canada.