CONFORMED COPY
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
__________________________________
December 30, 1994
Date of Report (Date of earliest event reported)
TANDY CORPORATION
(Exact name of registrant as specified in charter)
Delaware 1-5571 75-1047710
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
1800 Tandy Center, Fort Worth, Texas 76102
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (817) 390-3700
<PAGE>
Item 5. Other
A. TANDY ANNOUNCES CHANGES
Tandy Corporation (the "Corporation") announced the sale of
part of the credit card portfolios of Tandy Credit Corporation, the
transfer of most of its extended service contract obligations, the
discontinuance of all Video Concepts and most McDuff mall stores, and
some McDuff Supercenters stores, and an increase of its share repurchase
program to 12.5 million shares.
Sale of Tandy Credit: The Computer City and Incredible
Universe credit card portfolios have been sold to Hurley State Bank,
a subsidiary of SPS Transaction Services, Inc., a majority-owned
subsidiary of Dean Witter, Discover & Co.. A gain on the sale of
about $36 million is anticipated. Further, the Corporation has
signed a letter of intent to sell its remaining credit card portfolios,
subject to regulatory approval, to SPS or an affiliate of SPS early in
1995. As a result of these transactions, the Corporation has received
$85.8 million in cash immediately and will receive an additional
approximate $625 million during 1995, assuming the Tandy Name Brand
and Radio Shack credit card portfolios are sold as provided for in
the letter of intent.
Transfer of Service Contract Obligations: Tandy Corporation
has transferred most of its existing extended service contract
obligations to American Bankers Insurance Company of Florida. The
Corporation expects to recognize a gain of approximately $50 million
from this transaction. Going forward, Tandy Corporation will market
extended service contracts on behalf of American Bankers.
Discontinuance of Certain Stores: The Corporation will close
213 Video Concept and McDuff mall stores. Additionally, 20 McDuff
Supercenter stores, including all in the Houston market, will be closed.
The Houston store closings will open the market for the possible entry of
an Incredible Universe in the future. The Corporation will take a charge
of approximately $86 million to discontinue these operations.
Share Repurchase: The Corporation increased its share buyback
authorization from the 7.5 million shares previously announced to 12.5
million shares. About 5 million shares have already been purchased.
It is expected that these transactions, with the exception of
the share repurchase, will be recorded in theDecember quarter. The
dollar amounts indicated for these transactions are approximate and
subject to final adjustments, but it is not currently anticipated that
these transactions will change our earnings outlook for the December
1994 quarter or calendar year.
Sales for the month of December will be announced on
January 5 and the December quarter profits will be announced in late
February.
B. DWAIN H. HUGHES NAMED CHIEF FINANCIAL OFFICER OF TANDY CORPORATION
Effective January 1, 1995 Dwain H. Hughes, 47, has been named
Senior Vice President and Chief Financial Officer of Tandy Corporation.
He was previously Vice President and Treasurer of the Corporation.
Mr. Hughes will be responsible for all financial activities including
financial accounting, treasury, internal audit, investor relations, tax
and security. He will report to John V. Roach, Chairman and Chief
Executive Officer.
Mr. Hughes replaces William C. "Bill" Bousquette who has served
as the Chief Financial Officer since 1990, except for 1993 when he was
Chief Executive Officer of the TE Electronics division. Mr. Bousquette
leaves Tandy later this month to become Chief Financial Officer at Texaco
Inc.
<PAGE>
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 this 5th day of January, 1995.
TANDY CORPORATION
(Registrant)
Date January 5, 1995 By: /S/ Dwain H. Hughes
Dwain H. Hughes
Senior Vice President and
Chief Financial Officer
