You gotta be kidding me, I live in Canada and this is the
first time I'm hearing about it, that's really too bad. First
Whiterose and now this. Makes one wonder how soon it will be
til it's the end of Michaels too. Thanks so much for the heads
up!! Gonna keep my eyes open and see if there are any going
out of business sales.

It would not surprise me at all if Michaels was next to go.

I knew Lewiscraft was up for sale...but didn't know they were closing..wow!! That's a big loss of the Great North...

Don't fear for Michael's dear they are for sale but not due to bad business....
They are closing stores in the Midwest because they are just non profitable, but are still building and planning for bigger and better stores in larger markets.

http://www.dallasnews.com/s/dws/bus/stories/032106dnbusmichaels.43d3df37.html

Michaels Stores exploring a sale
Chain reviewing options as chief executive steps down
By HEATHER LANDY
STAR-TELEGRAM STAFF WRITER
Craft-supplies retailer Michaels Stores Inc. put itself up for sale Monday and announced the retirement of 67-year-old Chief Executive Michael Rouleau. Shares of the Irving-based chain rose 12.9 percent to their highest closing price in nearly four months.
Michaels said it hired JP Morgan to advise on "strategic alternatives to enhance shareholder value," including a possible sale, and expects to spend "a number of months" reviewing the company's options.
The CEO post will remain vacant for now. Jeffrey Boyer, chief financial officer, and Gregory Sandfort, general merchandise manager, were named co-presidents and will split the duties that had been Rouleau's.
"Jeff and Greg are ready to capitalize on the enormous opportunities that lie ahead for Michaels, and now is the time to pass the baton," said Rouleau, who over 10 years led an aggressive expansion and added sophistication to the burgeoning chain's distribution, inventory, planning and allocation systems. "I have every confidence that our capable management team is up to the task of making Michaels a bigger, more agile, faster-growing retailer."
But any additional growth is now likely to come under different ownership.
The retail industry has been bustling with merger activity over the past year. Stiffening competition prompted Kmart to combine with Sears Roebuck and Foley's parent May Department Stores to combine with Federated Department Stores.
At the same time, private investor groups flush with cash have bought out high-profile chains including Neiman Marcus Group, Toys "R" Us and Mervyn's.
"We're really looking for the appropriate vehicle, whether it be a private-equity situation or staying" public, Sandfort said in an interview. "It's also about being acknowledged for what we've accomplished and what we will accomplish."
Michaels, which went public in 1984 with fewer than 20 stores mainly in Texas, now has nearly 900 Michaels stores across the country, along with 165 Aaron Brothers framing and art-supplies shops, 11 Recollections stores offering scrapbooking supplies, and four Star Wholesale outlets geared toward florists, decorators and event planners.
Boyer said the board had been considering strategic alternatives for more than a year but stepped up its discussions in recent months with Michaels' stock trading at a discount to shares of rival retailers.
Before Monday, the stock (ticker: MIK) had been down 4.2 percent over the past 12 months. Monday's gains lifted the stock by $4.39, to $38.35.
With no debt and room to improve its sales through better prices, better service and a smarter store layout, Michaels would make an attractive takeover candidate, analysts said.
The stock "seems stuck at this time, with Rouleau having done a superb job of putting in the systems and infrastructure but unable to show the equivalent on the merchandising side," Credit Suisse analyst Gary Balter wrote in a note to clients.
Pointing to an unnamed rival chain with 20 percent higher sales volume per store, the analyst suggested that a new owner may be able to help Michaels catch up with the competition.
"We see no structural reason why Michaels can't close that gap if it can focus on the merchandising side of the store," wrote Balter, who has a "neutral" rating on Michaels' stock.
Balter said the company could fetch between $39 and $43 a share based on his 2006 financial projections for the chain.
Michaels was founded in Dallas in 1973, when Michael Dupey converted his father's Ben Franklin variety store into a craft-supplies studio.
Dupey's father sold the chain in 1983 to Peoples Restaurants, run by financiers Sam Wyly and Charles Wyly Jr. The brothers spun off Michaels a year later.
The Wyly brothers still have a stake of about 8 percent in Michaels, according to a spokesman for the chain. Charles Wyly Jr. serves as chairman and Sam Wyly as vice chairman.
Harvey Kanter, who had been president of Aaron Brothers, was promoted Monday to chief merchant for Michaels, replacing Sandfort in that post. Thomas Bazzone, who had led the Recollections and Star Wholesale divisions, was named executive vice president of specialty businesses, overseeing those chains along with Aaron Brothers.
As co-president of Michaels, Boyer will oversee the company's finance, information-systems, human-resources, real-estate, planning and legal departments. Boyer, 47, joined Michaels three years ago after holding executive posts at retailers including Sears and Kmart.
Sandfort, 50, will oversee merchandising, store operations, marketing and supply-chain management, and he will take on the role of chief operating officer.
Sandfort joined Michaels in January 2004 from Kleinert's Inc. He previously worked at retailers including Sears and Federated Department Stores.
Boyer and Sandfort will report to the board and to Charles Wyly Jr.
Rouleau will become a special adviser to the board.

Michaels just opened here in Nova Scotia on Apr 5/06.
Crafts Canada closed here in December 2005. At least one Atlantic Fabric Store is closing. I must check on Lewiscraft here and see if they are closing too.

The Lewiscraft here just closed, but I think it was due to competition from Michaels. SOME of the prices are better, the selection is MUCH larger, and they have that coupon in their flyer.

I had to pay Lewiscraft to get their circulars and coupons, and never seemed to be able to use them (at least during the last year I had the membership). "Oh, you can't use it on THAT yarn. Nope, not on the paint by numbers either. Certainly not on jewelry findings!".

Plus their location sucked (an out of the way spot in the mall near a dentists office) and there was no advertising. Nobody knew they were there.

found this:

Canada : Craft giant Lewiscraft Corp plans closure of 3 stores
March 24, 2006
Economic failure has forced Lewiscraft Corp to shut down three of its outlets in New Brunswick that will leave 14 workers unemployed.

National craft supplier is looking for a suitable buyer interested in this chain.

The chain has 90 stores, started back in 1913 and plunged into craft marketing only after 1970.

Here is a link that might be useful: story

I work at Lewiscraft. My understanding is that the closure was due to an inability to compete with the big box stores (Wal-Mart, Michael's) and that the store was not managed well after being sold by the Lewis family a few years ago.

Dances In Garden, I'm puzzled by your coupon problem. At my location, we always applied it to anything in store that was not already on sale - and would allow it to be used on multiple identical items (unlike Michael's) - for instance - on more than one ball of yarn.

The inventory was purchased by Bentley's and is being liquidated across Canada. Smaller stores have been closed first.

Last time I checked, yarn was 30% off, kid's kits 50% off, Xmas and Halloween 70% off. And we are still incredibly busy (I'm in Western Canada)

Have you people been in a Michaels lately? They are the biggest craft supply company in the world as well as custom framing company. They are going NO WHERE soon! I have worked in Michaels in the past and pretty much grew up there. They bring in TONS each year and are constantly opening new stores through out the world. The only reason a Michaels will close is if there is a newer and nicer one nearby which people prefer going to. If you go into a lewiscraft before they finally all close down and then head for a Michaels right after you will see almost instantly how much more expensive the items in lewiscraft are compared to Michaels. I have seen items selling for $2.99 at Michaels selling for $5.99 at lewiscraft, and often items are of poorer quality at lewiscraft (my opinion as a lifelong crafter)... The staff seemed a bit nicer at lewiscraft (until they found out their jobs went away, so now they are just grumpy in general) but I think that is just due to the quieter work day and the "smaller setting" lewiscraft seemed to have... (pretty much two clerks to a single customer at a time...)