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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