U.S. 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: August 4, 1997
THE VERMONT TEDDY BEAR CO., INC. (Exact name of small
business issuer as specified in its charter)
New York 1-12580
03-0291679
(State or other jurisdiction of
(Commission
(I.R.S. Employer
incorporation or organization)
File Number)
Identification No.)
2236 Shelburne Road, Post Office Box 965
Shelburne, Vermont 05482
(Address of principal executive offices)
(802) 985-3001
(Issuer's telephone number)
Item 5. Other Events
On Friday, July 18, 1997, The Vermont Teddy Bear Co.,
<PAGE>
Inc. (the _Company_) sold its manufacturing and headquarters
building and a portion of its real estate located in
Shelburne, Vermont to URSA (VT) QRS 12-30, Inc. (_URSA_), a
Vermont corporation and wholly owned subsidiary of Corporate
Property Associates 12, a real estate investment trust
managed by an affiliate of W.P. Carey and Co., Inc., for a
total sales price of approximately Five Million Nine Hundred
Thousand Dollars ($5,900,000). The Company has entered into
a lease with URSA, by which it has leased back the building
and real property sold for a period of twenty years. The
lease requires the Company to make rental payments totaling
$5,900,000 over its twenty year term. The transaction will
be accounted for under the financing method in accordance
with Statement of Financial Accounting Standard No. 98,
_Accounting for Leases._ The Company's obligations under
the lease are secured by a mortgage and security interest on
all of its remaining real property and assets.
Of the net proceeds of the sale, totaling approximately
Five Million Three Hundred Thousand Dollars ($5,300,000),
the Company has used approximately Three Million Nine
Hundred Thousand Million Dollars ($3,900,000) to pay off the
Company's mortgage and line of credit financing with the
Vermont National Bank. The Vermont National Bank
obligations were to come due on September 28, 1997. The
Company will use the remaining One Million Four Hundred
Thousand Dollars ($1,400,000) for general working capital.
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.
The Vermont Teddy Bear Co.,
Inc.
Date: August 4, 1997 /s/ Elisabeth B.
Robert ,
Elisabeth B. Robert,
Chief Financial Officer
