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 7, 1998
Date of Earliest Event Reported: November 11, 1998
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 November 11, 1998, Registrant issued a press release
announcing that construction has begun on a new production
facility for its Pinnacle Art & Frame division in Durango,
Mexico.
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 that
construction has begun on a new production
facility for its Pinnacle Art & Frame
division in Durango, Mexico.
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 7, 1998 By:/s/ Michael J. Walsh
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Michael J. Walsh
President
Date: December 7, 1998 By:/s/ James D. Allen
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James D. Allen
Chief Financial Officer
For Immediate Release
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TANDYCRAFTS, INC. BREAKS GROUND ON
NEW FRAME MANUFACTURING FACILITY IN DURANGO, MEXICO
FT. WORTH, Texas (November 11, 1998) -- TANDYCRAFTS, INC. (NYSE: "TAC"), a
manufacturer, wholesaler and retailer of specialty consumer and business
products, today announced that construction has begun on a new production
facility for its Pinnacle Art & Frame division in Durango, Mexico. Pinnacle Art
and Frame is one of the world's leading manufacturer of frames, framed art and
mirrors.
In a recent groundbreaking ceremony attended by His Excellency Guerrero Mier,
the Governor of Durango, and Hernandez Deras, Mayor of the City of Durango,
Tandycrafts initiated construction of a $2.8 million manufacturing plant on a
27-acre site which is owned by the Company. Initial plans call for a 150,000
square-foot production facility on six acres, leaving substantial land available
for future expansion.
"This manufacturing plant represents a strategic investment by Tandycrafts which
is designed to enhance Pinnacle's competitive position within the frame and wall
decor market," stated Michael J. Walsh, President and Chief Executive Officer of
Tandycrafts, Inc. "The facility, which should begin operating in the Spring of
1999, will allow Pinnacle to expand its production capacity on a very cost-
effective basis. Total cost of the construction project should approximate $2.8
million, and we expect to realize an impressive return on our investment through
increased production, reductions in overtime expenses, and improved
manufacturing efficiencies."
"We determined that Durango, with its proximity to the U. S. cities of Laredo
and El Paso, its access to regional timber production, a well-developed
infrastructure, and a growth-oriented government, offered an ideal location for
the new facility," continued Walsh. "The plant will be managed by Dieter Beick
Schuett, who has lived in Mexico for over 28 years and has more than nine years'
experience in building and managing production facilities in the frame and wall
decor industry."
Tandycrafts, Inc. manufactures, distributes and/or retails consumer and business
products through four distinct product-related divisions: Frames and Wall Decor,
Leather and Crafts, Office Supplies, and Novelties and Promotional. Its
products are marketed and sold through various channels, including direct-to-
consumer (e.g., retail stores, mail order, the Internet) and wholesale
distribution (e.g., direct sales force, telemarketing, outside sales
representatives). The Company is headquartered in Ft. Worth, Texas and its
common stock is listed on the New York Stock Exchange under the ticker symbol
"TAC".
THIS PRESS RELEASE INCLUDES STATEMENTS THAT MAY CONSTITUTE "FORWARD-
LOOKING" STATEMENTS, USUALLY CONTAINING THE WORDS "BELIEVE",
"ESTIMATE", "PROJECT", "EXPECT" OR SIMILAR EXPRESSIONS. THESE
STATEMENTS ARE MADE PURSUANT TO THE SAFE HARBOR PROVISIONS OF THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. FORWARD-LOOKING
STATEMENTS INHERENTLY INVOLVE RISKS AND UNCERTAINTIES THAT COULD CAUSE
ACTUAL RESULTS TO DIFFER MATERIALLY FROM THE FORWARD-LOOKING
STATEMENTS. FACTORS THAT WOULD CAUSE OR CONTRIBUTE TO SUCH
DIFFERENCES INCLUDE, BUT ARE NOT LIMITED TO, CONTINUED ACCEPTANCE OF
THE COMPANY'S PRODUCTS IN THE MARKETPLACE, COMPETITIVE FACTORS,
DEPENDENCE UPON THIRD-PARTY VENDORS, AND OTHER RISKS DETAILED IN THE
COMPANY'S PERIODIC REPORT FILINGS WITH THE SECURITIES AND EXCHANGE
COMMISSION. BY MAKING THESE FORWARD-LOOKING STATEMENTS, THE COMPANY
UNDERTAKES NO OBLIGATION TO UPDATE THESE STATEMENTS FOR REVISIONS OR
CHANGES AFTER THE DATE OF THIS RELEASE.
For further information, please contact:
James Allen, Chief Financial Officer at (817) 551-9600
or
R. Jerry Falkner, CFA, Investor Relations Counsel at (800) 377-9893
