MJ Designs
| MJ Designs logo | |
| Company type | Ceased operations in 2003 |
|---|---|
| Industry | Retail |
| Founded | 1986 |
| Founder | Michael Dupey (chairman) |
| Headquarters | Coppell, Texas |
| Products | Arts & crafts retail, scrapbooking, home decoration, custom framing |
| Revenue | N/A |
Number of employees | N/A |
MJ Designs operated as a retailer of arts and crafts merchandise within the Dallas/Fort Worth and Washington, D.C. metropolitan regions. The company initiated Chapter 11 bankruptcy proceedings on December 13, 2002,[1] ultimately ceasing operations in May 2003.
Products
The product range at MJ Designs included various arts and crafts supplies, floral arrangements, and materials for hobbies such as scrapbooking, custom framing, and pottery (bisque).
History
Michael Dupey began his career in 1968 with City Product Corporation (Ben Franklin Stores), where he transformed one location into an arts and crafts outlet[2] after his father, James Dupey, acquired it for $72,000 from City Product Corporation. Under the terms of this acquisition, Michael was obligated to reimburse his father $1.2 million post-tax within eight years. During this period, he rebranded the store as Michaels Arts & Crafts and successfully repaid the loan.
In 1983, James Dupey sold outstanding contracts to Sam Wyly. This transaction included unpaid store contracts, Michael’s cash deposits, and ownership of the Michaels Arts & Crafts name. Contrary to Michael’s understanding that the brand was registered under his corporation (Dupey Management Corporation), it was actually registered to James Dupey’s entity, Dupey Enterprises, Inc.[2]
Following this change in ownership, Michael collaborated with Sam Wyly, who returned two Michaels Arts & Crafts stores located in the Dallas/Fort Worth area to him as part of efforts to establish a public company.
Sam Wyly managed Michaels from 1983 until financial challenges arose in 1990. At that time, Michael Dupey—then operating a chain of 24 MJ Designs stores—was engaged as a special consultant. The public company advanced positively with strong momentum; by the end of 1990, Michaels operated 140 stores with sales totaling $362 million and reduced debt from $34 million to $9 million within a year. Michael continued consulting for the public company until 1999.
Initially part of Michaels under the name Michael's MJ Designs, MJ Designs separated in the mid-1980s due to significant disputes between father and son.Template:Fix/category[clarification needed] Following a court decision, Michael retained stores in the Dallas/Fort Worth area and along the East Coast, rebranding them as MJ Designs. James Dupey maintained control over stores in Austin and Houston. The ruling stipulated a seven-year non-compete zone between Michaels and MJ Designs to allow both businesses to expand independently.
When this non-compete agreement expired in 1997, MJ Designs filed for Chapter 11 bankruptcy protection in 1999 despite reporting $247.2 million in sales that year.[3]
By 2001, MJ Designs operated over 500 locations nationwide but divested its eight Maryland stores primarily to Michaels.[3] Concurrently, it shuttered all Northeast locations and several stores within Dallas/Fort Worth. Subsequently, Cardnell Investors acquired the remaining nine stores and resumed operations in Dallas/Fort Worth. However, MJ Designs filed for Chapter 11 bankruptcy once more on December 13, 2002,[1] before ultimately closing all locations by May 2003.