Dive Brief:
- Michaels on Tuesday named Staples Canada veteran David Boone its new CEO, effective Feb. 28. Boone arrives from e-commerce and third-party logistics company Essendant, where he is serving as interim CEO.
- Boone, who will also join the company’s board of directors, succeeds Ashley Buchanan, who stepped down from Michaels in January to become CEO of Kohl’s.
- Boone takes over from an interim office of the CEO team that consists of Michaels’ president, chief financial officer and chief merchant. That three-person team has led the privately held company’s daily operations since mid-January.
Dive Insight:
Boone is taking the helm of Michaels as the long-term survival of Joann, a competitor in the crafting and sewing segment, is uncertain. Joann recently filed for Chapter 11 for the second time in less than a year. The company received bankruptcy court approval on Friday to move forward with closing about 500 of the approximately 800 stores it operates in 49 states.
In contrast, Michaels’ board chairman Andrew Jhawar said in a statement his company is entering a period of opportunity. “David is a proven business leader with the strategic vision, customer focus and vast retail experience to continue to drive Michaels forward,” Jhawar said.
Boone’s retail leadership experience includes serving as CEO of Staples Canada during a six-year transformation effort. In that role, he revamped the retail experience, expanded merchandise offerings, and oversaw acquisitions and strategic partnerships, the retailer said in its announcement.
“Creativity has the power to bring people together, and I look forward to working alongside Michaels’ talented team leading this iconic company into its next chapter — driving innovation, strengthening our connection with the maker community, and ensuring Michaels remains the go-to destination where everyone can create and celebrate anything,” Boone said in a post on his LinkedIn.
Michaels, which currently operates over 1,300 stores in 49 states and Canada, experienced an uptick at the height of the pandemic as people took up crafting during quarantine and stay-at-home orders. The company accepted a $5 billion offer from Apollo Global Management in 2021 that took the company private in a transaction that valued Michaels at $3.3 billion.
Since then, Michaels launched a marketplace, MakerPlace by Michaels, that competes in the same space as Etsy. Also in 2023, it debuted a brand identity refresh as the company marked its 50th anniversary.
The company also launched several other initiatives in recent years. Those include price cuts on over 5,000 items and a partnership last summer with DoorDash and Uber Eats to offer same-day delivery of crafting supplies. The company also became an official partner of the NFL’s Dallas Cowboys and worked with actress Jennifer Love Hewitt on a handmade holiday gift guide.
