MOUNT VERNON – The Mount Vernon Pat Catan’s will not be converted into a Michaels store, The Michaels Companies officials told Knox Pages Tuesday.
The Texas-based parent company announced Jan. 30 that it would be closing all 36 Pat Catan’s locations across the midwest, although 12 would be rebranded as Michaels stores. The company was expected to make its decision “within the next 60 days” as to which stores would be converted, employees at the Mount Vernon store said.
On Tuesday, Michaels Public Relations Manager Mallory Smith provided this email statement:
“Unfortunately, we have decided not to rebrand the Mount Vernon Pat Catan’s location as a Michaels store. After carefully reviewing a number of factors, we have decided that this location is not a viable go-forward location for us.
“We greatly appreciate the support the Mount Vernon community has given the Pat Catan’s team, and I know our Pat Catan’s team has enjoyed serving them. Please know that we are committed to providing opportunities for all impacted team members and are working closely with our team members to help manage through this transition.”
It is still unclear when the Mount Vernon store will officially close, although assistant manager Krista Gaumer said after the January announcement that closures could happen “as soon as September or October.”
There are currently 25 employees at the Mount Vernon store, located at 1550 Coshocton Ave., which opened in 2010. Employees at the store declined to comment on Tuesday, saying they have been instructed not to talk to media, and to instead refer all informational requests to the corporate public relations department.
While it is still unclear why The Michaels Companies chose to close the Mount Vernon location for good, CEO Chuck Rubin said in a statement in January that Pat Catan’s storefronts have “struggled in the face of industry headwinds” during recent years. Michaels plans to continue its growing wholesale business and keep open the Strongsville, OH distribution center heading forward.
“We believe these changes will provide more value for customers and shareholders by enabling us to leverage a more consistent merchandise assortment and eliminate duplicative retail operating expenses,” Rubin stated.
“This was not an easy decision, and I am grateful for the contributions of our Pat Catan’s Team Members. As we work through the closing process, we intend to provide employment opportunities or transition support for all Team Members.”
Gaumer speculated that the rise of e-commerce giants like Amazon could have contributed to the downfall of brick-and-mortar chains like Pat Catan’s.
“You hear about Kmart, Sears and stuff going down,” she said. “And unfortunately, things like Amazon – even though it’s great that you can shop at home, it’s really tough for brick-and-mortar stores.”
Still, Gaumer and shoppers in the store that day seemed surprised by the company’s decision to close. They hoped Mount Vernon’s store would be rebranded, given the local need for the business. It is currently Knox County’s lone major arts and crafts retailer, offering an extensive selection of fabric, crafting supplies, home decor and more.
Wal-Mart has a limited supply of crafting items, while The Makery, located in downtown Mount Vernon, sells yarn and other goods. But no store has the selection or quantity that Pat Catan’s does, customers said.
Gaumer said the Mount Vernon store has attracted a loyal customer base over the years.
“You’ve got a big Amish community, you’ve got a lot of retired people, you’ve got a lot of people that just love crafting,” Gaumer said of the community. “You’ve got the Knox County Fair, cross-stitching, stuff like that. There are a lot of do-it-yourself-ers here.”
It is still unclear which Pat Catan’s stores will be rebranded, as the company has yet to issue a public list. In recent days, news outlets across the state have reported on the fate of their local stores – the Wooster and Sandusky locations will reportedly be rebranded, while stores in Tiffin and Norwalk will face a similar fate as Mount Vernon’s. The majority of the chain’s 36 stores are located in Ohio, although there are several in Pennsylvania, West Virginia and Michigan.
The Michaels Companies noted in its January press release that Pat Catan’s brought in $111 million in fiscal year 2018. Michaels expects it will cost $44 million to $48 million after taxes to close the chain. That will include costs associated with the termination of remaining lease obligations, the write-off of fixed assets, costs associated with liquidation, and employee-related expenses.
According to its website, The Michaels Companies is North America’s largest specialty provider of arts, crafts, framing, floral, wall décor, and seasonal merchandise. The company owns and operates more than 1,200 stores in 49 states and Canada under the brands Michaels, Aaron Brothers and Pat Catan’s. The company bought the Pat Catan’s chain in 2016.
Knox Pages has asked for further information regarding the decision to close the Mount Vernon store. This story will be updated as that information becomes available.
