Michaels looks to streamline operations

IRVING, Texas Michaels Stores has reached an agreement with Tata Consultancy Services to co-source various functions, initially including portions of the retailer's IT, information services and accounts payable functions.

"Our goal in 2009 is to focus our time, resources and people on our core competencies that have made us the world's largest arts and crafts specialty retailer," said Michaels CEO Brian Cornell. "By allowing TCS, a leading IT services and business solutions provider, to handle functions not directly related to our core retail competencies, we can move forward toward that goal."

Michaels said it will also eliminate 95 positions and co-source 200 others in an effort to streamline costs.

"We are in solid operational shape, with adequate liquidity, and we want to build on that foundation to weather current and future economic conditions while remaining the leader in our category," said Cornell. "Our current strategic initiatives are moving us in the right direction, and we know that now is a good time to examine our business and make decisions from a position of strength and stability."