<B>By LAUREY LUMMUS</B> <FONT SIZE=-1><I>Staff Reporter</I></FONT>
Hobby Lobby, soon to relocate to the Citadel Crossing Shopping Center, isabout to encounter a rival store opening down the street.
The Citadel Plaza will be the home of Michaels, which is currently locatedat 4438 Austin Bluffs Parkway. A 25,000-square-foot building is underconstruction and will be finished in January.
Michaels is moving because the location will better suit its clientele, accordingto a spokesperson for the company.
Michaels, which bills itself as <I>the</I> arts and crafts store was startedin 1983 by Dallas entrepreneurs who were principals in Peoples Restaurants.The first 11 stores were located in Texas.
In 1984, the company went public, trading on the NASDAQ stock exchange. Thatwas also the year that marked the first Michaels store opened in Colorado.
The company has faced challenges, namely when a leveraged buyout of the companywas attempted in 1989. Because of the predicament, the company reported noearnings for that year.
Michaels also has ties with the retail giant Wal-Mart. Wal-Mart attemptedto create an arts and crafts retail chain, named Helen’s. Three of the storeswere bought by Michaels.
In 1995, Michaels acquired Aaron Brothers, a framing and arts store company,which operated 70 stores, primarily in California. The stores have retainedthe Aaron Brothers name and reported revenues of $60 million in 1994.
Michaels reported 1995 revenue of $1.28 billion.