One of the year’s most hotly anticipated IPO offerings, Michaels Stores, could possibly be derailed because of a scandal involving its CEO’s previous tenure as a Wal-Mart executive.
On March 30th, Michaels Stores filed a widely anticipated notice with the SEC that it intends to become a publicly-held company again through an IPO that could raise as much as a half-billion dollars according to the SEC filing. Its private equity ownership Blackstone Group and Bain Capital have hired JP Morgan Chase and Goldman Sachs to manage the IPO. Michaels was purchased by Blackstone and Bain in 2006 for $6 billion, and has been burdened ever since with a heavy debt load (currently $3.49 billion) that was used to finance the purchase. The company says it plans to use the IPO in part to pay off some of that debt. [Read more...]