US-based speciality retailer The Michaels Companies has decided to close all 36 stores of its Pat Catan’s brand during the fourth quarter of the 2018 fiscal year.
Pat Catan’s brand is a retailer of arts and crafts with stores in Ohio and other US states.
Following the closure, the company plans to rebrand around 12 of its stores, which will be reopened under the Michaels banner this year.
The Michaels Companies chairman and CEO Chuck Rubin said: “After a comprehensive review, we have decided to close all of the Pat Catan’s retail stores. We expect to rebrand and reopen up to 12 stores as new Michaels stores in fiscal 2019, and we will continue to maintain a support centre and distribution centre in Strongsville, Ohio, to support our growing wholesale business.
“We believe these changes will provide more value for customers and shareholders by enabling us to leverage a more consistent merchandise assortment and eliminate duplicative retail operating expenses.
“This was not an easy decision, and I am grateful for the contributions of our Pat Catan’s team members. As we work through the closing process, we intend to provide employment opportunities or transition support for all team members.”
The retailer expects Pat Catan’s to generate approximately $111m net sales for the fiscal year 2018 with no material impact on the consolidated adjusted operating income, excluding the impact of any restructuring charges related to the store closures.
The Michaels Companies currently owns and operates more than 1,200 stores in Canada and 49 US states under Michaels, Aaron Brothers, and Pat Catan’s brands. It offers arts, crafts, framing, floral, wall décor and seasonal merchandise.