Crafts retailer Michaels to close all Aaron Brothers stores- source

By Jessica DiNapoli

March 21 (Reuters) - Michaels Companies Inc willshut down all of its approximately 100 Aaron Brothers framingand art supplies stores, a person familiar with the matter saidon Wednesday, as the largest U.S. crafts retailer grapples withthe popularity of online shopping.

The move is the latest example of how brick-and-mortarretailers are struggling to compete with e-commerce sites suchas Amazon.com Inc. More than 15 U.S. retailers filedfor bankruptcy last year.

The decision by Michaels, which owns and operates more than1,300 stores in the United States and Canada, could be announcedas early as Thursday, when the company reports fourth-quarterearnings, the source said, asking not to be identified becausethe move has not been made public.

A Michaels spokesman did not respond to a request forcomment.

Aaron Brothers stores are located largely on the U.S. WestCoast, offering custom framing and an assortment of painting anddrawing tools.

Michaels acquired Aaron Brothers in 1995, when the frameretailer was a 71-store chain and then grew it over the years.

Michaels, known for its workshops and aisles of ideas forcrafting projects, went public in 2014 and now has a marketcapitalization of close to $4 billion.

The company is approximately 40 percent owned by BainCapital Partners LLC and Blackstone Group LP, the privateequity firms that took it private in 2006 for $6 billion.(Reporting by Jessica DiNapoli in New York; Editing by AmruthaGayathri)