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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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): January 13, 2000
THE GREAT TRAIN STORE COMPANY
(Exact Name of Registrant as Specified in Its Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
1-13158 75-2539189
(Commission File Number) (I.R.S. Employer Identification No.)
14180 Dallas Parkway, Suite 618, Dallas, Texas 75240
(Address of Principal Executive Offices) (Zip Code)
(972) 392-1599
(Registrant's Telephone Number, Including Area Code)
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Item 5. Other Events.
On January 13, 2000, The Great Train Store Company issued a press
release with respect to its preliminary fiscal 1999 results and its current
credit facility.
Item 7. Financial Statements and Exhibits.
(c) Exhibits:
Exhibit Description
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99.1 Text of press release, dated January 13, 2000, issued by
the Great Train Store Company.
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SIGNATURE
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 thereunto duly authorized.
Date: January 13, 2000
THE GREAT TRAIN STORE COMPANY
By: /s/ James H. Levi
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James H. Levi
President, Chief Executive Officer
and Chairman of the Board
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EXHIBIT INDEX
Exhibit Description
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99.1 Text of press release, dated January 13, 2000, issued by the
Great Train Store Company.
PRESS RELEASE
FOR IMMEDIATE RELEASE CONTACT: Cheryl A. Taylor
972-392-1599
THE GREAT TRAIN STORE COMPANY RELEASES
PRELIMINARY 1999 RESULTS
(January 13, 2000 - DALLAS) The Great Train Store Company (OTC Bulletin
Board "GTRN"), a Dallas based national chain of train-themed toy, hobby and gift
stores, has announced preliminary 1999 sales results.
Total sales for the fiscal year 1999 increased 3.2% to approximately
$35,031,000 from approximately $33,933,000 in fiscal year 1998. Comparable store
sales decreased 8.1% in 1999 as compared to 1998.
Total sales for the fourth quarter of 1999 decreased 8.3% to
approximately $15,981,000 from approximately $17,424,000 in the fourth quarter
of 1998. Comparable store sales decreased 9.9% in the fourth quarter of 1999 as
compared to the fourth quarter of 1998. Comparable store sales are calculated
based on the stores open during both full periods being compared.
The Company's earnings for 1999 have not yet been determined. However,
as a result of its poor sales performance, it is reasonable to expect that the
Company's 1999 earnings will be less than projected.
Because of its performance last year, the Company is presently not in
compliance with certain provisions of its revolving line of credit. As a result,
the provider of that financing has limited the amounts it is willing to advance
and has reserved its rights to provide funding at its discretion. The Company
and its lender are actively working together to develop an action plan that will
satisfactorily resolve the situation. In the event that the Company is
unsuccessful in reaching an appropriate resolution with its lender, it will be
necessary to supplement or replace that loan. The Company cannot give any
assurance that it will be able to supplement or replace the loan or that any
such supplement or replacement will not be on terms less favorable than the
current loan.
The Great Train Stores are a national chain of unique, upscale
specialty retail stores with "more trains than you ever imagined," selling a
wide range of merchandise all relating to trains and railroading. There are
currently 56 stores operating in 27 states and the District of Columbia,
primarily located in highly trafficked regional malls and festival marketplaces.
The Great Train Stores are owned and operated by The Great Train Store
Partners, L.P., a wholly-owned subsidiary of The Great Train Store Company. The
Great Train Store Company is a public company.
Actual results may differ materially from "forward-looking" statements
due to a number of important factors. Those factors, including possible
difficulties in obtaining appropriate merchandise for its stores on a timely
basis, the availability of adequate financing, and successfully operating such
stores, are more fully discussed in the Company's most recent Form 10-K and
Exhibit 99.1 attached to the Company's Form 10-Q for the third quarter of 1999,
a copy of which is available without charge from the Company.
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