Craft Chain Michaels Puts Itself Up for Sale

Michaels Stores Inc., an arts and crafts retail chain, put itself up for sale Monday and said its longtime president and chief executive, R. Michael Rouleau, was retiring. Its shares rose nearly 13%.

Michaels said its decision to put itself up for sale as part of its broader exploration of its strategic options was driven by a desire to boost shareholder value and improve its financial performance.

The Irving, Texas-based retailer said it would leave the CEO post vacant, and named Jeffrey N. Boyer and Gregory A. Sandfort as co-presidents to succeed Rouleau in that position. The company said Rouleau, 67, was leaving “after a decade of exemplary service.”

Boyer was previously executive vice president and chief financial officer; Sandfort was formerly executive vice president and general merchandise manager.

Boyer will continue to hold the finance chief’s post, and Sandfort will take on the role of chief operating officer. Both co-presidents will report to Chairman Charles J. Wyly Jr. His brother Sam is vice chairman.

The Wylys are Texas financiers who took control of Michaels in 1984 and own more than 8% of the company.

Michaels shares rose $4.39, or 12.9%, to $38.35.

Michaels Stores owns and operates 896 Michaels stores in 48 states and Canada, 165 Aaron Brothers stores, 11 Recollections stores and four Star Wholesale operations.

Michaels said it had hired investment bank JPMorgan as its financial advisor as it reviewed its options, a process it said would take a number of months.

Sam Wyly has run hedge companies and sold a software company to Computer Associates International Inc., which he later tried but failed to take over.