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Michaels

National chain of stores selling arts and crafts.

Headquarters:
8000 Bent Branch Dr.
Irving, TX 75063
Employees: 10,000+
CEO: Brian Cornell
Privately held

Website: http://www.michaels.com

Career Site

Michaels Stores is North America's largest specialty retailer of arts, crafts, framing, floral, wall décor, and seasonal merchandise for the hobbyist and do-it-yourself home decorator. As of May 30, 2007, the Company owns and operates 930 Michaels stores in 48 states and Canada, 168 Aaron Brothers stores, 11 Recollections stores, and four Star Wholesale operations.

Each Michaels store carries more than 40,000 products in an average selling space of 18,400 square feet. Stores offer a wide range of products in the following 13 categories: apparel arts, bakeware, beads/jewelry making, fine art, floral, framing, general crafts, kids crafts, home décor, paper crafts, seasonal, wedding, and yarn and needle crafts.

Key Subsidiaries
Aaron Brothers, with 166 stores in 11 states, offers an extensive assortment of ready-made frames and mats, quality art supplies and custom framing services.

Recollections has 11 stores in four states and offers merchandise and accessories for paper crafting and scrapbooking as well as an extensive classroom program.

Star Decorators Wholesale stores ­ located in Arizona, California, Georgia and Texas - offer merchandise primarily for interior designers, decorators, wedding/event planners, florists, hotels, restaurants and commercial display companies.

Artistree is a manufacturing operation with facilities in City of Industry, Calif., Coppell, Texas, and Kernersville, N.C. Artistree supplies Michaels and Aaron Brothers with unique custom frames.

The company is privately held after being acquired by two private equity firms last year.

History

Since 1973, Michaels has been providing inspiration and education to customers of all ages. With excellent customer service, a broad product assortment, in-store events and classrooms, the company offers a shopping experience that inspires customers to pursue their creative goals.

In 1984, with 16 stores located primarily in Texas, Michaels became a publicly-held company. The company then embarked on an aggressive national expansion program through a series of new store openings and acquisitions. By 1995, it had increased its holdings to over 500 stores. The company strengthened its operations in following years by improving infrastructure and heavily investing in inventory, point-of-sale, human resources, financial and labor management systems.

In 2006, Bain Capital Partners and The Blackstone Group ­ two private equity firms ­ acquired Michaels. As a result of the merger transaction, the common stock (formerly NYSE: MIK) is no longer publicly traded.

Benefits

Associate Discount
All Michaels associates are awarded a 25% discount card with restrictions on all non-sale merchandise items at Michaels and Aaron Brothers retail stores.

401(K) Program
Our 401(k) Plan is available to associates who work 500 hours in their 1st 6 months of active employment. Participation is available on a pre-tax and after-tax basis, within IRS limits. The company will match 50% of the first 6% of the associate's pre-tax contributions. Associates may contribute up to 15% of their annual salary.

Medical Insurance
Associates may elect to participate in the company's Group Medical Plan after meeting the eligibility waiting period (either 90 or 180 days of full-time active employment, depending on employment classification). Michaels offers comprehensive health coverage at affordable rates.

To accommodate new associates during their first days of employment, an affordable bridge insurance plan is offered from the associate's start date to the date of eligibility for group medical insurance.

Dental Insurance
Dental coverage is offered independent of medical coverage. Full-time associates and their dependents may use the dentist of their choice and the plan includes a dental check-up twice a year.
Vision
A discounted Vision plan is offered independent of medical coverage.
Basic Life and Accidental Death and Dismemberment (AD&D)
Michaels provides Basic Life and Accidental Death and Dismemberment (AD&D) insurance benefits at no cost to all eligible full-time associates enrolled in the medical and/or dental plan. Basic Associate Life coverage will be provided in the amount of two times the associate's basic annual earnings to a maximum designated dollar amount. AD&D coverage will be paid in the amount of your basic Associate Life Coverage.

Optional Life Insurance
Associates may elect additional life insurance for themselves in designated increments, up to $700,000 or five times their annual salary, whichever amount is less. Associates also have the option or electing additional life insurance for their dependents.
Long Term Disability
Depending on employment classification, Long Term Disability is provided to Michaels associates offering protection by paying a portion of the associates income while disabled. The amount received is dependent on the amount earned before the disability.
Short Term Disability
Associates are eligible to enroll for Short Term Disability insurance after meeting their eligibility waiting period. Short Term Disability benefits begin after an elimination period for absences from work due to a non-occupational illness or accidental injury. STD benefits replace a portion of an associate's weekly rate of basic earnings, to a maximum weekly benefit determined by employment classification.

Time Away From Work
- Vacation
- Depending on employment classifications, associates are able to accrue time off for vacation. Generally, team members begin to earn vacation hours on their date of hire.
- Personal Holidays - Associates are granted floating personal holidays each year based upon the associate's date of hire in addition to accrued vacation time.
- National Holidays - Associates are eligible for paid national holidays.
- Sick Time - Paid sick time is accrued after 90 days of service. Unused sick time is carried over and will accumulate to a maximum of 30 days.
- Bereavement Pay - Associates are granted up to three days paid leave while attending the funeral of an immediate family member.
- Jury Duty Pay - While serving on a jury, associates will be paid their regular salary.
- Military Leave - A Military Leave of Absence is available for military or reserve duty.

Other Great Benefits and Discounts
- Flexible Spending Accounts
- Medical and Dependent Day Care flexible spending accounts are available. This benefit allows associates to set aside money on a pre-tax basis to cover medical and childcare expenses.
- Employee Assistance Program (EAP) - All associates are able to get help with psychological, stress, financial and emotional issues through a toll free number.
- Employee Referral Program - Michaels associates are encouraged to refer candidates for career opportunities. In the event that a referral is hired within the specified guidelines, the Michaels referee will receive a monetary award.
- Credit Union - Associates and their immediate family members are eligible to participate in the Corporate America Family Credit Union.
- Direct Deposit - Associates are eligible to participate in the direct deposit of your payroll to the financial institution of their choice for their convenience.

Updated July 23, 2007