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: June 11, 1999
Date of Earliest Event Reported: June 16, 1999
TANDYCRAFTS, INC.
A DELAWARE CORPORATION
1-7258 75-1475224
------ ----------
(Commission File Number) (IRS Employer Identification No.)
1400 Everman Parkway
Fort Worth, Texas 76140
(817) 551-9600
ITEM 5. OTHER EVENTS
------------
(a) On June 11, 1999, Registrant issued a press release announcing
the plans to reorganize its Pinnacle Art & Frame unit.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
---------------------------------
(c) Exhibits.
--------
Exhibit
Number Description
------- -------------------------------------------------
99 Copy of press release announcing the plans to
reorganize its Pinnacle Art & Frame unit.
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: June 16, 1999 By:/s/ Michael J. Walsh
----------------------- --------------------------
Michael J. Walsh, President
and Chief Executive Officer
Date: June 16, 1999 By:/s/ James D. Allen
----------------------- --------------------------
James D. Allen, Executive Vice
President and Chief Financial
Officer
Date: June 16, 1999 By:/s/ Troy A. Huseman
----------------------- --------------------------
Troy A. Huseman
Assistant Vice President and
Controller
CONTACT: Jim Allen, Mike Murray
Tandycrafts, Inc. (817) 551-9600
([email protected])
FOR IMMEDIATE RELEASE or
Jeff Lambert, Brian Edwards ([email protected])
Lambert, Edwards & Associates, Inc. (616) 233-0500
TANDYCRAFTS REORGANIZES PINNACLE FRAMES DIVISION
------------------------------------------------
COMPANY WILL SHIFT MANUFACTURING TO NEW PLANT, CENTRALIZE DISTRIBUTION &
------------------------------------------------------------------------
ADMINISTRATION
--------------
FORT WORTH, Texas - June 11, 1999 - Tandycrafts, Inc. (NYSE:TAC) today announced
plans to reorganize its Pinnacle Art & Frame unit in order to improve efficiency
and customer service. Pinnacle is a leading manufacturer of frames, framed art
and mirrors that are sold under the Magee, Impulse and Hermitage brand names.
Tandycrafts, a Fort Worth-based maker and marketer of products for the home and
office, said the plan includes the closure of Pinnacle's Van Nuys, Calif. frame
manufacturing and distribution facility by the end of 1999. Tandycrafts said
manufacturing operations will be shifted from the California facility to the
Company's new, state-of-the-art production facility in Durango, Mexico.
Pinnacle's distribution operations will be moved to Tandycrafts' corporate
facility in Fort Worth. Tandycrafts also reported that Pinnacle's research and
development, design, sales, and administration functions that were previously
located in California will be centralized at the Company's Fort Worth
headquarters.
"We are committed to making Pinnacle the leader in the frames and wall decor
market," said Michael Walsh, president and chief executive officer of
Tandycrafts. "Our commitment to becoming a world-class manufacturer of frames
and wall decor necessitates that we have superior products and a more efficient
cost structure. The planned closure of the California operation, while difficult
from an employee perspective, will provide tremendous benefits in terms of our
production efficiency, capabilities and capacity."
Approximately 400 employees will be affected over the next six months, including
layoffs and relocations. Tandycrafts said it will work with Van Nuys-area
employment agencies to help displaced Pinnacle workers find new jobs.
"We are positioning the company for the future," said Jim Allen, executive vice
president and chief operating officer of Tandycrafts. "We continue to focus on
and invest in operations that offer the most long-term growth and profit
potential. The Pinnacle business remains a key component of our future success,
and we are committed to providing it with the financial and operational
resources for growth. We have strengthened our team at Pinnacle, with key
personnel additions in manufacturing, product development and design, as well as
sales and marketing. Additionally, the new Durango facility gives us the
capacity and capabilities we will need to pursue growth in the $2 billion niche
market for frames and framed art."
--MORE--
TANDYCRAFTS/PAGE 2
Tandycrafts, Inc. (www.tandycrafts.com) is a manufacturer, distributor and
retailer of consumer products, including frames and wall decor, office supplies
and gifts. The Company's products are marketed and sold nationwide through
wholesale distribution channels, including mass merchandisers and specialty
retailers, and direct-to-consumer channels through the Company's retail stores,
mail order and the Internet. Tandycrafts is headquartered in Fort Worth, Texas.
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.
###
