Pat Catan’s craft stores in Ohio and nearby states will close, including locations in Austintown, Boardman, Hermitage and Warren. Lamrite West was acquired by Michaels Companies in 2016; as part of this transition they plan on rebranding up to 12 closing Pat Catan’s stores as Michaels stores for one-time after-tax costs estimated between $44 million to 48 million, mostly related to lease obligations termination costs associated with closing stores.
Micheals expects no material impact to its adjusted operating income and anticipates recognizing most of the one-time after-tax cost during its fourth-quarter fiscal 2018 performance. Furthermore, savings should come from eliminating duplicate retail operating expenses and providing customers with more consistent merchandise offerings, according to Chuck Rubin’s CEO statement in a press release.
Michaels offers an outstanding selection of arts and crafts supplies during the holidays. That includes items like yarn, needles, paper, paint and scrapbooking materials; in addition, seasonal merchandise such as Christmas decorations and Halloween costumes is also sold here.
Michaels Companies recently acquired Lamrite West for $150 million, promising to keep its name, Strongsville headquarters and current team in place. Current chief executive Michael Catanzarite will remain as leader while wholesale business Darice will operate independently from Lamrite West.
