Crafts retailer Michaels looks to long-awaited summer IPO: sources

(Reuters) - The initial public offering of Michaels Cos Inc, which has been planned for the last two years, will finally take place this summer, according to people familiar with the matter.

The U.S. crafts retailer is likely to begin marketing shares to potential investors in the next several weeks, according to the sources, who declined to be named because the matter is private.

Michaels, which had been publicly traded and was taken private by Blackstone Group LP and Bain Capital LP for $6 billion in 2006, initially filed for an IPO of up to $500 million in March 2012. That was postponed after then-Chief Executive Officer John Menzer had a stroke and stepped down.

The Texas-based company withdrew the IPO last December after going through a reorganization, immediately refiled under a new name and then updated its registration documents in May.

Michaels and Bain could not be reached immediately for comment. Blackstone declined to comment.

Michaels confirmed in April it was hit by a security breach of customer payment cards. The company said about 400,000 cards were potentially affected by the breach, which occurred between June 26, 2013 and February 27, 2014.

The company doesn't expect the data breach to have an impact on the IPO, the sources said.

Michaels, which owns several private brands such as Recollections, Artist's Loft and Loops & Threads, competes with Hobby Lobby Stores Inc, Jo-Ann Stores Inc and Wal-Mart Stores Inc.

Michaels had 1,262 stores as of May 3, and approximately $4.6 billion in sales in fiscal 2013.

JPMorgan Chase & Co and Goldman Sachs are leading the IPO.

(Reporting by Greg Roumeliotis and Olivia Oran in New York; Editing by Jeffrey Benkoe and Jonathan Oatis)

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