Michaels Craft Store Going Out Of Business
Michaels Craft Store Announces Closure
Michaels, the largest American arts and crafts retail chain, has announced that it will be closing all of its remaining stores. The company has been struggling for years due to competition from online retailers and declining foot traffic in malls.
History of Michaels Craft Store
Michaels was founded in 1973 by Michael J. Dupey in Dallas, Texas. The company went public in 1984 and grew rapidly, expanding to over 1,200 stores in the United States and Canada. Michaels became known for its wide selection of arts and crafts supplies, as well as its in-store classes and events.
Declining Sales and Bankruptcy
In 2019, Michaels reported a net loss of $97.2 million and announced plans to close 36 underperforming stores. However, the COVID-19 pandemic further hurt the company's sales, as many of its stores were forced to close due to lockdowns. In May 2020, Michaels filed for Chapter 11 bankruptcy in an effort to restructure its debt and stay afloat.
Online Competition and Changing Consumer Habits
Michaels has struggled to compete with online retailers such as Amazon and Etsy, which offer a wider selection of products and lower prices. In addition, many consumers have shifted their shopping habits away from brick-and-mortar stores and towards online shopping. This trend has been accelerated by the COVID-19 pandemic, as more people have turned to online shopping for safety reasons.
Store Closures and Going-Out-of-Business Sales
Michaels had already closed over 100 stores before the pandemic, but the company's financial troubles have only worsened since then. In March 2021, Michaels announced that it would be closing all of its remaining stores, which numbered over 1,200 at their peak. The company has also begun holding going-out-of-business sales to liquidate its inventory.
Impact on the Arts and Crafts Industry
Michaels' closure is a significant blow to the arts and crafts industry, as the company was one of the largest retailers of art supplies in the United States. The closure will also have an impact on the many artists and crafters who relied on Michaels for their supplies and inspiration. However, there are still many other art supply stores and online retailers that will continue to serve this market.
Conclusion
Michaels' closure is a sad reminder of the challenges faced by brick-and-mortar retailers in today's digital age. However, it is also a testament to the resilience of the arts and crafts industry and the many artists and crafters who continue to create and inspire others.