PRIVATE EQUITY OWNED
Michaels
Includes Michaels Stores
arts & crafts · Irving, TX
- PE Firm
- Apollo Global Management →
- Year Acquired
- 2021
Apollo loaded $4 billion in debt onto a craft store. The hot glue holding it together is drying fast.
What They Did
- Apollo took Michaels private in 2021 for $5 billion, financing it with ~$4B in new debt and turning a pandemic-era winner into another debt-fueled bet
- Sales at existing stores fell by high single digits in mid-2022; S&P downgraded Michaels' credit, citing weak demand and rising freight costs
- Closed its Tracy, California distribution center in 2025, laying off 229 warehouse workers
- Had to borrow $326 million in a single quarter just to keep shelves stocked for the holidays — a sign the company can't fund basic operations
Since the Acquisition
- Self-checkout kiosks replaced cashiers across 40% of stores — fewer employees available to help you find supplies or answer craft questions
- Distribution center closures mean inconsistent in-store stock and longer waits on online orders — your local Michaels might just not have what you need
- Stores are visibly understaffed and disorganized — the pandemic-era craft destination that thrived in 2020 feels like a ghost of itself
- Average consumer rating of 1 star on major complaint platforms — reviews cite empty shelves, broken fixtures, and staff stretched too thin to help
Sources
- Michaels downgraded as craft boom wanes — Retail Dive(2022-10-14)
- Apollo lines up $4B of debt for Michaels — Bloomberg(2021-03-03)
- Michaels to go private in $5B Apollo deal — CNBC(2021-03-03)
- How Apollo-owned Michaels turned two rivals' bankruptcies into a growth strategy — Fortune (Phil Wahba)(2026-07-17)
- Michaels to close one of its two California distribution centers, laying off hundreds of workers — CBS News(2025-06-11)