Michaels Stores, Inc. announced Friday (July 20th) that CEO John Menzer has resigned to focus on his medical rehabilitation.
Menzer had been on medical leave from Michaels since he suffered a stroke in mid-April. The company has been being run since then by an Office of the CEO comprised of Lew Klessel, Interim Chief Operating Officer for the Company and Managing Director of Bain Capital, and Chuck Sonsteby, Chief Administrative Officer and Chief Financial Officer.
The company has announced that it will conduct a search for a replacement for Menzer, and the Office of the CEO will continue to run the company in the interim until a replacement is found.
Private equity firms Bain Capital Partners, LLC and The Blackstone Group L.P. are controlling partners in Michaels Holdings LLC, which owns 93% of Michaels Stores outstanding common stock.
“Our thoughts and prayers continue to be with John and his family during his ongoing recovery. We will greatly miss his leadership, passion and enthusiasm, but the imprint he has left on the Company will endure in its people and their commitment to excellence,” said Matt Levin, Managing Director with Bain Capital Partners, LLC. “John’s contributions to Michaels cannot be overstated and he will always remain part of the Michaels family.”
Peter Wallace, Senior Managing Director with Blackstone, added: “One of John’s many legacies is the strength of the team he built throughout the organization. We are fortunate to have such a capable group to carry forward under Lew and Chuck’s leadership while we complete the process of selecting a new CEO for the Company.”
Michaels Stores filed notice with the SEC on March 30th that it intended to issue an IPO of stock up to $500 million in value. However, reports this month quoted sources close to the company as saying the IPO was on hold “indefinitely,” likely due to the instability in the company’s leadership and the effect of the Facebook IPO on the investment market.