IRVING, Texas, Feb. 23 /PRNewswire-FirstCall/ -- Michaels Stores
(NYSE: MIK) said today that, on February 17, 2005, it received a grand jury
subpoena from the District Attorney's Office of the County of New York for
documents and records in an inquiry concerning non-U.S. trusts that directly
or indirectly hold and have held shares of common stock and common stock
options of Michaels Stores. The inquiry appears to relate to the beneficial
ownership of securities of the Company that are held directly or indirectly by
the non-U.S. trusts and securities transactions by these trusts. The Company
is fully cooperating with the District Attorney's office and the Securities
and Exchange Commission, which has also opened an inquiry into this matter.
Certain of these trusts and corporate subsidiaries of the trusts acquired
securities of the Company in transactions directly or indirectly with Charles
J. Wyly, Jr. and Sam Wyly, who are, respectively, Chairman and Vice Chairman
of the Board of Directors of the Company, or with other Wyly family members.
In addition, subsidiaries of certain of these trusts acquired securities of
the Company in private placement transactions in 1996 with the Company.
The Company understands that Charles and Sam Wyly and certain of their
family members are direct or contingent beneficiaries of irrevocable non-U.S.
trusts. The sale by the Company of Michaels Stores securities to subsidiaries
of certain of these trusts was disclosed by the Company in filings with the
Securities and Exchange Commission. The transfer by Charles and Sam Wyly (or
by other Wyly family members or family-related entities) of Michaels Stores
securities to certain of these trusts and subsidiaries has been disclosed in
filings with the Securities and Exchange Commission by the Company and/or by
Charles and Sam Wyly. Based on information available to the Company, the
Company's SEC filings have not reported those securities as beneficially owned
by Charles and Sam Wyly.
Information with respect to the number of Michaels Stores securities held
directly or indirectly by these trusts as of February 22, 2005, has been
provided to the Company by Charles and Sam Wyly. Charles Wyly and/or certain
of his family members are direct or contingent trust beneficiaries of
irrevocable non-U.S. trusts that are the direct or indirect holders of
2,867,204 shares of the Company's common stock. Sam Wyly and/or certain of
his family members are direct or contingent trust beneficiaries of other
irrevocable non-U.S. trusts that are the direct or indirect holders of
2,146,200 shares of the Company's common stock.
Michaels Stores, Inc. is the world's largest specialty retailer of arts,
crafts, framing, floral, wall decor, and seasonal merchandise for the hobbyist
and do-it-yourself home decorator. As of February 23, 2005, the Company owns
and operates 845 Michaels stores in 48 states and Canada, 165 Aaron Brothers
stores, eight Recollections stores, and three Star Wholesale operations.
SOURCE Michaels Stores, Inc.
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Related links:
http://www.michaels.com
Company News On-Call:
http://www.prnewswire.com/comp/115769.html
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CONTACT:
Jeffrey N. Boyer, Executive Vice President -
Chief Financial Officer, +1-972-409-1581, or Christopher J.
Holland, Vice President - - Finance, +1-972-409-1667, both of
Michaels Stores, Inc.
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