Company announces new CEO appointment, sees departure of Chief Financial Officer
Michaels Companies Announces Changes in Leadership and Strategic Initiatives
The Michaels Companies, a leading arts and crafts retailer, has announced several significant changes, including the search for a permanent CEO, the appointment of an interim CEO, and the expansion of its in-store offerings.
Current CEO Chuck Rubin will continue in his role as chairman of the board of directors until April 1, 2020. Rubin, who did not give a reason for his departure, will hand over the CEO position to Mark Cosby, who has been appointed as the interim CEO. Cosby brings over 30 years of experience leading retail chains to the role.
In a move to further strengthen its leadership team, Michaels has also appointed Ashley Buchanan as the next CEO, effective April 1, 2020. Buchanan previously held executive roles at Walmart, most recently as COO and chief merchandising officer for Walmart U.S. eCommerce. Philo Pappas has been appointed as interim president of merchandising and supply chain at Michaels Companies.
In its most recently reported quarter, Michaels' comparable store sales grew 3.8%, a positive sign for the company's performance. However, the company's operating income fell to $137.2 million from $153.9 million due to lower gross profit and higher selling, and general administrative expenses.
In an effort to enhance the customer experience, Michaels has rolled out technology to enable more personalized content, promotions, and offers. The company has also launched MichaelsKids.com, an online destination for kids' arts and crafts supplies, and expanded its in-store kids assortment.
The company has also faced challenges, including the closure of all 36 of its Pat Catan stores. Neil Saunders, GlobalData Retail Managing Director, viewed the closure of Pat Catan stores as inevitable.
Michaels' CFO Denise Paulon has announced her resignation from her position, effective Jan. 31, 2020. The company has not named a replacement for Paulon at this time.
James Quella, lead director of the Board of Directors of The Michaels Companies, thanked Chuck Rubin for his leadership and commitment. "Chuck has been an outstanding leader for Michaels, and we are grateful for his many contributions to the company," Quella said.
The Michaels Companies is looking forward to working with Mark Cosby and the management team as they move forward with their strategic initiatives. Buchanan, who is currently CEO Designate, will take the role on Jan. 6, 2020, and will work closely with Cosby and the team to ensure a smooth transition.
