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
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June 22, 1998
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 File (IRS Employer
jurisdiction of Number) Identification No.)
of incorporation)
100 Throckmorton, Suite 1800, Fort Worth, Texas 76102
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code (817) 415-3700
Item 5. OTHER
The text of a press release issued by the Company on June 22, 1998, is set forth
below:
TANDY CORPORATION MEETS STRATEGIC OBJECTIVE OF
DIVESTITURE OF COMPUTER CITY
Fort Worth, Texas -- Tandy Corporation's (NYSE: TAN) strategic
objectives have been to divest of Computer City, focus on RadioShack's growth
potential and optimize utilization of excess cash flow.
Tandy has signed a definitive agreement with CompUSA Inc. (NYSE: CPU)
for the sale of 100% of Tandy's Computer City, Inc. subsidiary ("CCI"). The
purchase price is approximately $275 million payable in cash and a note. The
transaction is subject to regulatory approval, due diligence and other
conditions. It is currently anticipated that the sale will close within 90 days.
Tandy reacquired the 19.9% interest of CCI from Eureka Venture Partners III LLP
which was purchased in July of last year. Related to the Eureka Venture Partners
transaction, the management agreement which was in place has been terminated.
The Company will record in the June 1998 quarter an after-tax charge of $38 to
$43 million as a result of the divestment. In addition, operating results will
continue to be reported by Tandy until the sale closes. It is anticipated that
the divestiture of Computer City will have a positive impact on future earnings
and cash flow of Tandy Corporation.
"Recent trends in the PC industry decreased the value of Computer City
below our previous expectation, but the sale now permits Tandy management to
focus on the exciting growth opportunities at RadioShack," stated Tandy
Corporation Chairman and CEO John V. Roach.
"I will continue to work closely with CompUSA to ensure an orderly
transition and a timely closing," commented Leonard Roberts, CEO-elect of Tandy
Corporation. "Now that Tandy is RadioShack and RadioShack is Tandy, the
financial markets can finally analyze and value Tandy Corporation as a highly
profitable retail format. Looking forward," Roberts continued, "our sales and
profits at RadioShack continue to show excellent gains over the prior year. Our
residual income from the sale of services will continue to grow and positively
impact our earnings and new areas such as home connectivity are emerging. With
the divestment of Computer City we couldn't be more optimistic of Tandy's
future."
Tandy Corporation, one of the largest retailers of consumer
electronics, sells its products through approximately 6,900 RadioShack(R)
outlets.
Statements made in this press release which are forward-looking
statements involve risks and uncertainties including, but not limited to,
economic conditions, product demand, competitive products and pricing,
availability of products, the regulatory and trade environment, real estate
market fluctuations and other risks indicated in filings with the Securities and
Exchange Commission such as Tandy's most recent Form 10-K and 10-Q.
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 22nd day of June, 1998.
TANDY CORPORATION
(Registrant)
Date June 22, 1998 __/S/ Dwain H. Hughes____________
Dwain H. Hughes
Senior Vice President and
Chief Financial Officer
