Irving, Texas, Michaels Stores Inc. said Tuesday it is exiting its Recollections and Star Decorators’ Wholesale businesses as part of a plan to focus resources on its core retail chains.
The retailer said it will close 11 Recollections stores, including four in Dallas-Fort Worth, and three of its four Star locations by the end of first-quarter 2008. The company will continue to operate one Star location under the Moskatel’s banner.
Michaels said it expects to take charges of $11 million to $14 million related to lease obligations, inventory liquidation, asset-related write-downs and severance benefits. The company expects most of the charges to occur in the third quarter of 2007.