Michaels Crafts an Unlikely Comeback Under Apollo

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โดย Bloomberg·Read original

Summary · why it matters

Michaels Cos. has staged a dramatic financial and operational turnaround under Apollo Global Management, with its bonds recovering from 34 cents on the dollar to near par and first-quarter sales and adjusted Ebitda growing by double digits. The retailer, which Apollo bought five years ago, seized on the bankruptcies of Party City and Joann to expand into balloons, yarn, and sewing machines, while new CEO David Boone is opening reimagined stores focused on hands-on experiences. Despite high leverage and tariff risks, Moody's expects leverage to improve to 5.5x this year and free cash flow to turn positive in 2026. Apollo is considering an IPO for Michaels, though no timeline has been set.

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The Michaels Companies, Inc.Private▲ Positive

DemandCapitalrelevance

Michaels expanded into balloons, yarn, and sewing machines after rivals' bankruptcies, driving double-digit sales growth.

Party CityPrivate▼ Negative

Competitionrelevance

Party City's bankruptcy allowed Michaels to capture its market share in balloons and party supplies.