8-K

                       SECURITIES AND EXCHANGE COMMISSION


                             WASHINGTON, D.C. 20549


                                ---------------


                                    FORM 8-K


                                 CURRENT REPORT


                     Pursuant to Section 13 or 15(d) of the
                        Securities Exchange Act of 1934


       Date of report (Date of earliest event reported)    July 6, 2001


                             Michaels Stores, Inc.
               (Exact Name of Registrant as Specified in Charter)


          Delaware                      0-11822                  75-1943604
(State or Other Jurisdiction    (Commission File Number)        (IRS Employer
     of Incorporation)                                       Identification No.)


               8000 Bent Branch Drive, Irving, Texas     75063
                    P. O. Box 619566, DFW, Texas       75261-9566
              (Address of Principal Executive Offices) (Zip Code)


      Registrant's telephone number, including area code    (972) 409-1300




ITEM 5. OTHER EVENTS.

        On July 6, 2001, Michaels Stores, Inc. (Nasdaq:  MIKE) (the "Company")
announced that it has completed a private placement of $200 million of its
9 1/4% Senior Notes due 2009 in a transaction exempt from the registration
requirements of the Securities Act of 1933. Pursuant to Rule 135c of the
Securities Act of 1933, the Company is filing herewith the press release
issued July 6, 2001 as Exhibit 99.1 hereto.

        The Notes that have been offered have not been registered under the
Securities Act of 1933 and may not be offered or sold in the United States
absent registration or an applicable exemption from registration requirements.

ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
    (c)
    Exhibits.



                Exhibit No. Description
                ----------- -----------------------------------
                99.1.       Press Release, dated July 6, 2001.





                                   SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


    MICHAELS STORES, INC.


    By: /s/ BRYAN M. DECORDOVA
       -----------------------------------------------------------
       Name: Bryan M. DeCordova
       Title: Executive Vice President and Chief Financial Officer


Date: July 6, 2001



                                 EXHIBIT INDEX

Exhibit No. Description
- ----------- -----------------------------------
99.1.       Press Release, dated July 6, 2001.

EX-99.1

                                                                    Exhibit 99.1

                                 [LETTERHEAD]


Contact: Bryan M. DeCordova
Executive Vice President --
Chief Financial Officer
(972) 409-1581


Christopher J. Holland
Vice President -- Finance
(972) 409-1667


NEWS RELEASE FOR IMMEDIATE RELEASE


                MICHAELS ANNOUNCES $200 MILLION DEBT ISSUANCE

IRVING, Texas - July 6, 2001 - Michaels Stores, Inc. (Nasdaq: MIKE) today
announced that it has completed a private placement of $200 million of 9 1/4%
Senior Notes due 2009 to certain institutional investors in an offering exempt
from the registration requirements of the Securities Act of 1933.

     The Notes that have been offered have not been registered under the
Securities Act of 1933 and may not be offered or sold in the United States
absent registration or an applicable exemption from registration requirements.
This press release shall not constitute an offer to sell or a solicitation of
an offer to buy such notes and is issued pursuant to Rule 135c under the
Securities Act of 1933.

- -----------------------------------------------------
8000 BENT BRANCH DRIVE - IRVING, TEXAS 75063
972/409-1300