US-based crafts speciality retailer Michaels Companies has unveiled plans to close 94 Aaron Brothers framing and art supplies stores by the end of July.
The decision to close almost all of the Aaron Brothers stores, comes after the company has completed its strategic review of the business.
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This move was announced on 22 March, in the fourth quarter and Fiscal 2017 results.
Michaels closed 15 of the Aaron Brother stores in 2017. The framing and art supplies store
Despite Aaron Brothers posting net sales of $110m last year, Micheals closed 15 of the framing and art supplies stores as their sales did not have any material impact on the company’s operating income last year and 15 stores were closed.
Aaron Brothers will be transformed into store-within-a-store concept, operating within Michaels locations.
Michaels owns and operates approximately 1,300 stores across US and Canada.
The company will rebrand its custom framing web portal Framerspointe.com as AaronBrothers.com.
Implementing these changes is expected to cost the company between $37m and $42m after-tax, most of which the company anticipates will be recognised in the first quarter of 2018.
For the fourth quarter of 2017, Michaels reported revenues of $1.89bn and earnings per share of $1.12.
Michaels’ move comes as several retailers are struggling to compete with e-commerce companies, such as Amazon.
The intense competition forced more than 15 retailers in US to file for bankruptcy protection in 2017.
Michaels purchased Aaron Brothers in 1995. The frame retailer was then operating 71 outlets.
