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: December 21, 1995
Date of Earliest Event Reported: December 18, 1995
TANDYCRAFTS, INC.
A DELAWARE CORPORATION
1-7258 75-1475224
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(Commission File Number) (IRS Employer Identification No.)
1400 Everman Parkway
Fort Worth, Texas 76140
(817) 551-9600
ITEM 5. OTHER EVENTS
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(a) On December 18, 1995, Registrant issued a press release
announcing that Sheldon I. Stein had been named to the
Tandycrafts, Inc. Board of Directors.
(b) On December 20, 1995, Registrant issued a press release
announcing the implementation of a strategic restructuring and
consolidation program for which the Company expects to take an
after-tax charge in its second fiscal quarter ending December 31,
1995 of up to $14.3 million.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
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(c) Exhibits.
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Exhibit
Number Description
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99.1 Copy of press release announcing that Sheldon I.
Stein had been named to the Tandycrafts, Inc.
Board of Directors.
99.2 Copy of press release announcing the
implementation of a strategic restructuring
program and expected second quarter charge to
income.
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 of the
undersigned thereunto duly authorized.
TANDYCRAFTS, INC.
Date: December 21, 1995 By:/s/ Jerry L. Roy
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Jerry L. Roy
President
Date: December 21, 1995 By:/s/ Michael J. Walsh
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Michael J. Walsh
Chief Financial Officer
SHELDON I. STEIN NAMED TO THE TANDYCRAFTS, INC.
BOARD OF DIRECTORS
FORT WORTH, TEXAS, December 18, 1995 -- Sheldon I. Stein, senior managing
director and head of the Southwestern Corporate Finance Department for Bear,
Stearns & Co. Inc., has been named a director of Tandycrafts, Inc. (NYSE Symbol:
TAC).
Stein joined Bear Stearns in 1986 and has overseen numerous corporate
finance transactions, including initial public offerings, debt and equity
financings, mergers and acquisitions. Prior to joining Bears Stearns, Stein was
a partner with the Dallas law firm of Hughes & Luce, where he specialized in
corporate finance, mergers and acquisitions.
Stein has a B.A. degree in Political Science from Brandeis University,
where he graduated Magna Cum Laude and was a member of Phi Beta Kappa, and holds
a J.D. degree from Harvard Law School.
He is a director of The Men's Wearhouse, Inc., Cinemark USA, Inc., AMRE
Inc., Fresh America Corp. and Jerell Inc.
TANDYCRAFTS, INC. TO IMPLEMENT STRATEGIC RESTRUCTURING
AND CONSOLIDATION PROGRAM
After-Tax Charge Up To $14.3 Million To Be Taken
In Second Quarter Ending December 31, 1995
FORT WORTH, TEXAS, December 19, 1995 -- Tandycrafts, Inc. (NYSE: TAC)
announced today plans to implement a strategic restructuring and consolidation
program designed to increase its competitive position and to increase value for
Tandycrafts shareholders.
As a result, the Company expects to take pretax charges (primarily non-cash
in nature) for the second quarter ending December 31, 1995, of approximately
$19.0 to $22.0 million ($12.4 to $14.3 million after tax, or $1.04 to $1.20 per
share) to reflect the implementation of this program. Certain expenses related
to the implementation of this program will not be separately reported as a
restructuring charge, but will be reflected in operations as incurred. Cash
proceeds after tax benefit resulting from the implementation of this program are
projected to be in excess of $15 million and will be used to reduce bank debt.
The program will focus on the divestiture and/or closure of certain non-
core businesses; the elimination of low growth and low margin lines of
businesses; the realignment and consolidation of certain functions within
various operating divisions; reductions of certain administrative costs; the
closure of underperforming retail stores; and the write down of goodwill
associated with certain prior acquisitions.
The program also calls for the retention of an outside consulting firm to
assist senior management with the expansion of the Company's fastest growing
retail concepts.
The Company said the specific actions to be taken would be disclosed in
greater detail when the Company releases its second quarter results in January
1996.
In making this announcement, Earl Cox III, Chairman, said "the actions
approved by the Board represent the culmination of a process initiated in August
1995, to assess our corporate structure and the strengths and weaknesses of our
individual business units. During this process, we examined the mix of our
businesses and the role and strategy of each in generating sales and profits, as
well as each business's market position and growth potential. Based on our
review we have determined to become more focused by focusing our resources in
those areas which offer the greatest potential for growth and increased value
for our shareholders."
The Company also announced that Mr. Sheldon I. Stein, senior managing
director and head of the Southwestern Corporate Finance Department for Bear
Stearns & Co. Inc., had agreed to serve as a Director of the Company.
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