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: April 3, 1997
Date of Earliest Event Reported: March 31, 1997
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 March 31, 1997, Registrant issued a press release announcing
fiscal third quarter charges to reposition its Joshua's Christian
Stores chain.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
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(c) Exhibits.
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Exhibit
Number Description
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99 Copy of press release announcing fiscal third
quarter charges to reposition its Joshua's
Christian Stores chain.
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: March 31, 1997 By:/s/ Michael J. Walsh
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Michael J. Walsh
President
Date: March 31, 1997 By:/s/ James D. Allen
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James D. Allen
Chief Financial Officer
TANDYCRAFTS, INC. TO INCUR PRE-TAX CHARGES TO REPOSITION ITS
JOSHUA'S CHRISTIAN STORES CHAIN
Fort Worth, Texas. March 31, 1997 -- TANDYCRAFTS, INC. (NYSE: TAC) announced
today that it will incur pre-tax charges of up to $5.3 million in its third
fiscal quarter ending March 31, 1997, as a result of actions designed to
reposition its Joshua's Christian Stores chain. The charges include markdowns
resulting from the liquidation of discontinued merchandise and certain costs
associated with the closing of 13 under-performing stores. Joshua's currently
has 71 stores.
Michael J. Walsh, Chief Executive Officer of Tandycrafts, stated: "In their
efforts to reposition the chain, Joshua's new management team has reviewed the
current merchandise assortment and has identified certain merchandise that will
not be continued. We have decided to liquidate this merchandise as soon as
possible in order to optimize our merchandise mix and enhance the look of our
stores. We have also identified 13 under-performing stores which will be
closed. These locations have limited potential for revenue growth and do not
meet our current market and site location criteria. These actions, together
with other cost cutting measures which have already been initiated, should
position Joshua's to be profitable in fiscal 1998. We have already seen strong
double-digit same-store sales growth at Joshua's in recent months and these
actions should help to provide increased focus and restore a more profitable
cost structure."
Mr. Walsh noted that "This action reflects our commitment to see all of
Tandycrafts' operations profitable as we head into fiscal 1998. We have seen
much progress during fiscal 1997 as we have continued to focus attention on the
Company's most profitable and promising operations. On a fiscal year-to-date
basis, all of Tandycrafts' current divisions are profitable except for
Joshua's. We believe the efforts made this year, including this action, will
help to position Tandycrafts' operating divisions to achieve a strong rebound
in fiscal 1998."
Certain statements contained herein which are not historical facts are forward
looking statements that involve risks and uncertainties including, but not
limited to, customer demand and trends, related inventory risks due to shifts in
customer demand, risks associated with new business opportunities, competition,
dependence on key personnel, the performance of each operating unit,
relationships with key customers, commodity price fluctuations, new product
introductions, interest rate fluctuations, recessionary factors, seasonality and
other risks disclosed in the Company's latest annual report on Form 10-K filed
with the Securities and Exchange Commission.
Tandycrafts, Inc. is a specialty retailer and manufacturer. Included in its
Specialty Retail segment are Tandy Leather Company, Joshua's Christian Stores,
and Sav-On Office Supplies. The Specialty Manufacturing segment is comprised of
two manufacturing divisions: Picture Frames and Framed Art and Tandy Wholesale
International ("TWI").
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