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đź”´ PRIVATE EQUITY OWNED
Michaels
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.”
The PE Playbook
- •Apollo financed the $5B acquisition with ~$4B in new debt, turning a pandemic-era winner into another leveraged bet
- •Same-store sales fell 6.4% in 2023; S&P downgraded the company citing weak demand and high freight costs
- •Closed distribution centers and shifted fulfillment to stores, laying off hundreds of warehouse workers
- •Pulled $326M from revolving credit line in a single quarter to manage seasonal inventory — a sign of cash flow stress