SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
--------------
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 4)1
Tandycrafts, Inc.
- --------------------------------------------------------------------------------
(Name of issuer)
COMMON STOCK, $1.00 PAR VALUE
- --------------------------------------------------------------------------------
(Title of class of securities)
875386104
- --------------------------------------------------------------------------------
(CUSIP number)
STEVEN WOLOSKY, ESQ.
OLSHAN GRUNDMAN FROME ROSENZWEIG & WOLOSKY LLP
505 Park Avenue
New York, New York 10022
(212) 753-7200
- --------------------------------------------------------------------------------
(Name, address and telephone number of person
authorized to receive notices and communications)
December 7, 1999
- --------------------------------------------------------------------------------
(Date of event which requires filing of this statement)
If the filing person has previously filed a statement on Schedule 13G
to report the acquisition which is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(b)(3) or (4), check the following box
/ /.
Note. six copies of this statement, including all exhibits, should be
filed with the Commission. See Rule 13d-1(a) for other parties to whom copies
are to be sent.
(Continued on following pages)
(Page 1 of 15 Pages)
- --------
1 The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page
shall not be deemed to be "filed" for the purpose of Section 18 of the
Securities Exchange Act of 1934 or otherwise subject to the liabilities of that
section of the Act but shall be subject to all other provisions of the Act
(however, see the Notes).
<PAGE>
- --------------------------------------- --------------------------------
CUSIP No. 875386104 13D Page 2 of 15 Pages
- --------------------------------------- --------------------------------
================================================================================
1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
STEEL PARTNERS II, L.P.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OR ORGANIZATION
DELAWARE
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,537,100
OWNED BY
EACH ----------------------------------------------------------------
REPORTING
PERSON WITH
8 SHARED VOTING POWER
-0-
----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,537,100
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,537,100
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.8%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
- --------------------------------------- --------------------------------
CUSIP No. 875386104 13D Page 3 of 15 Pages
- --------------------------------------- --------------------------------
================================================================================
1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
WARREN LICHTENSTEIN
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OR ORGANIZATION
USA
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,537,100
OWNED BY
EACH ------------------------------------------------------------------
REPORTING
PERSON WITH
8 SHARED VOTING POWER
- 0 -
------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,537,100
------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,537,100
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.8%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
- --------------------------------------- --------------------------------
CUSIP No. 875386104 13D Page 4 of 15 Pages
- --------------------------------------- --------------------------------
================================================================================
1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
MARK E. SCHWARZ
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OR ORGANIZATION
USA
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 264,200
OWNED BY
EACH
REPORTING ----------------------------------------------------------------
PERSON WITH
8 SHARED VOTING POWER
- 0 -
----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
264,200
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
264,200
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.2%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
- --------------------------------------- --------------------------------
CUSIP No. 875386104 13D Page 5 of 15 Pages
- --------------------------------------- --------------------------------
================================================================================
1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
NEWCASTLE PARTNERS, L.P.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OR ORGANIZATION
TEXAS
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 264,200
OWNED BY
EACH ----------------------------------------------------------------
REPORTING
PERSON WITH
8 SHARED VOTING POWER
- 0 -
----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
264,200
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
264,200
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.2%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
- --------------------------------------- --------------------------------
CUSIP No. 875386104 13D Page 6 of 15 Pages
- --------------------------------------- --------------------------------
The following constitutes Amendment No. 4 ("Amendment No. 4") to the
Schedule 13D filed by the undersigned (the "Schedule 13D"). This Amendment No. 4
amends the Schedule 13D as specifically set forth.
Item 2 is hereby amended and restated in its entirety to read as
follows:
Item 2. Identity and Background.
(a) This Statement is filed on behalf of Steel Partners II,
L.P., a Delaware limited partnership ("Steel Partners II"), Warren G.
Lichtenstein, Newcastle Partners, L.P., a Texas limited partnership
("Newcastle") and Mark E. Schwarz.
Steel Partners L.L.C., a Delaware limited liability company
("Partners LLC"), is the general partner of Steel Partners II. The sole
executive officer and managing member of Partners LLC is Warren G. Lichtenstein,
who is Chairman of the Board, Chief Executive Officer and Secretary.
Newcastle is a Texas limited partnership. Mark E. Schwarz is
the sole general partner of Newcastle. The principal business of Newcastle is
the purchase, sale, exchange, acquisition and holding of investment securities.
Each of the foregoing are referred to as a "Reporting Person"
and collectively as the "Reporting Persons". By virtue of his position with
Steel Partners II, Mr. Lichtenstein has the power to vote and dispose of the
Issuer's Shares owned by Steel Partners II. By virtue of his position with
Newcastle, Mark E. Schwarz has the power to vote and dispose of the Issuer's
shares owned by Newcastle.
(b) The principal business address of Steel Partners and
Warren Lichtenstein is 150 East 52nd Street, 21st Floor, New York, New York
10022.
The principal place of business of Mark Schwarz is 1601 Elm
Street, Suite 4000, Dallas, Texas 75201.
The principal business address of Newcastle is 4020 Windsor
Avenue, Dallas, Texas 75205.
(c) The principal business of Steel Partners II is investing
in the securities of microcap companies. The principal occupation of Mr.
Lichtenstein is investing in the securities of microcap companies.
<PAGE>
- --------------------------------------- --------------------------------
CUSIP No. 875386104 13D Page 7 of 15 Pages
- --------------------------------------- --------------------------------
The principal business of Newcastle is the purchase, sale,
exchange, acquisition and holding of investment securities. The principal
occupation of Mr. Schwarz is the purchase, sale, exchange, acquisition and
holding of investment securities.
(d) No Reporting Person has, during the last five years, been
convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors).
(e) No Reporting Person has, during the last five years, been
party to a civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was or is subject to a judgment,
decree or final order enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state securities laws or finding any
violation with respect to such law.
(f) Mr. Lichtenstein and Mr. Schwarz are citizens of the
United States of America.
Item 3 is hereby amended and restated in its entirety to read as
follows:
Item 3. Source and Amount of Funds or Other Consideration.
The aggregate purchase price of the 1,537,100 Shares of Common
Stock owned by Steel Partners II is $4,932,762. The Shares of Common Stock owned
by Steel Partners II were acquired with partnership funds.
The aggregate purchase price of the 264,200 Shares of Common
Stock owned by Newcastle is $865,653. The Shares of Common Stock owned by
Newcastle were acquired with partnership funds.
Item 5 is hereby amended and restated in its entirety to read as
follows:
Item 5. Interest in Securities of the Issuer.
(a) and (b) The aggregate percentage of Shares of Common Stock
reported owned by each person named herein is based upon 12,011,136 Shares
outstanding, which is the total number of Shares of Common Stock outstanding as
reported in the Issuer's Quarterly Report on Form 10-Q for the fiscal quarter
ended September 30, 1999.
As of the close of business on December 7, 1999, Steel
Partners II beneficially owns 1,537,100 Shares of Common Stock, constituting
approximately 12.8% of the Shares outstanding. Mr. Lichtenstein beneficially
owns 1,537,100 Shares, representing
<PAGE>
- --------------------------------------- --------------------------------
CUSIP No. 875386104 13D Page 8 of 15 Pages
- --------------------------------------- --------------------------------
approximately 12.8% of the Shares outstanding. Mr. Lichtenstein has sole voting
and dispositive power with respect to the 1,537,100 Shares owned by Steel
Partners II by virtue of his authority to vote and dispose of such Shares. All
of such Shares were acquired in open-market transactions.
As of the close of business on December 7, 1999, Newcastle
beneficially owns 264,200 Shares of Common Stock, constituting approximately
2.2% of the Shares outstanding. Mr. Schwarz beneficially owns 264,200 Shares,
representing approximately 2.2% of the Shares outstanding. Mr. Schwarz has sole
voting and dispositive power with respect to the 264,200 Shares owned by
Newcastle by virtue of his authority to vote and dispose of such Shares. All of
such Shares were acquired in open-market transactions.
(c) The Reporting Persons engaged in the following
transactions since the filing of Amendment No. 3:
Shares of Common Stock Price Per Date of
Purchased Share Purchase
--------- ----- --------
Steel Partners II
7,000 3.30000 11/23/99
15,000 3.34250 11/24/99
355,000 3.27000 12/07/99
Newcastle
1,000 3.31000 11/15/99
6,000 3.31000 11/16/99
3,200 3.29500 11/24/99
2,000 3.29500 11/26/99
2,000 3.29500 11/29/99
1,900 3.29500 11/30/99
5,100 3.29088 12/01/99
2,000 3.29000 12/02/99
15,000 3.30630 12/03/99
21,000 3.29000 12/06/99
205,000 3.27049 12/07/99
<PAGE>
- --------------------------------------- --------------------------------
CUSIP No. 875386104 13D Page 9 of 15 Pages
- --------------------------------------- --------------------------------
(d) No person other than the Reporting Persons is known to
have the right to receive, or the power to direct the receipt of dividends from,
or proceeds from the sale of, such Shares of the Common Stock.
(e) Not applicable.
Item 6 is hereby amended and restated in its entirety to read as
follows:
Item 6. Contracts, Arrangements, Understandings or Relationships With Respect
to Securities of the Issuer.
As of December 7, 1999 the Reporting Persons entered into a
Joint Filing Agreement, reflecting their agreement to form a group to, among
other things, evaluate whether the Reporting Persons may want to nominate a
slate of directors at next annual meeting of stockholders (or to solicit written
consents or votes to obtain a change in the Board of Directors of Tandycrafts)
or consider other matters for approval by the Issuer's stockholders. A copy of
the Joint Filing Agreement is filed as an exhibit to this Schedule 13D and
incorporated herein by reference.
Other than as described herein, there are no contracts,
arrangements or understandings among the Reporting Persons, or between the
Reporting Persons and any other Person, with respect to the securities of the
Issuer.
Item 7 is hereby amended in its entirety to read as follows:
Item 7. Material to be Filed as Exhibits.
1. Joint Filing Agreement between Steel Partners and
Warren G. Lichtenstein (previously filed).
2. Joint Filing Agreement between Steel Partners II,
L.P., Warren Lichtenstein, Newcastle Partners,
L.P. and Mark E. Schwarz dated as of December 7,
1999.
<PAGE>
- --------------------------------------- --------------------------------
CUSIP No. 875386104 13D Page 10 of 15 Pages
- --------------------------------------- --------------------------------
SIGNATURES
After reasonable inquiry and to the best of his knowledge and
belief, each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Dated: December 10, 1999 STEEL PARTNERS II, L.P.
By: Steel Partners, L.L.C.
General Partner
By: /s/ Warren G. Lichtenstein
-------------------------------------
Warren G. Lichtenstein
Chief Executive Officer
/s/ Warren G. Lichtenstein
----------------------------------------
WARREN G. LICHTENSTEIN
NEWCASTLE PARTNERS, L.P.
By: /s/ Mark E. Schwarz
------------------------------------
Mark E. Schwarz
General Partner
/s/ Mark E. Schwarz
----------------------------------------
Mark E. Schwarz
<PAGE>
- --------------------------------------- --------------------------------
CUSIP No. 875386104 13D Page 11 of 15 Pages
- --------------------------------------- --------------------------------
EXHIBIT INDEX
Exhibit Page
Joint Filing Agreement (previously filed)
Joint Filing Agreement between Steel Partners, 12
Warren Lichtenstein, Newcastle Partners, L.P.
and Mark E. Schwarz dated as of December 7, 1999
<PAGE>
- --------------------------------------- --------------------------------
CUSIP No. 875386104 13D Page 12 of 15 Pages
- --------------------------------------- --------------------------------
JOINT FILING AGREEMENT
WHEREAS, certain of the undersigned are shareholders, direct
or beneficial, of Tandycrafts, Inc. ("Tandycrafts"), a Delaware corporation;
WHEREAS, Warren Lichtenstein and Mark E. Schwarz wish to form
a group (the "Group") in order to evaluate whether to nominate a slate of
directors to the Board of Directors of Tandycrafts (or solicit written consents
or votes to obtain a change in the Board of Directors of Tandycrafts) and to
consider matters for approval by the stockholders of Tandycrafts;
NOW, IT IS AGREED, this 7th day of December 1999, by the
parties hereto:
3. In accordance with Rule 13d-1(f)(1)(iii) under the
Securities Exchange Act of 1934, as amended, the persons named below agree to
the joint filing on behalf of each of them of statements on Schedule 13D with
respect to the Common Stock of Tandycrafts.
4. So long as this agreement is in effect, each of the
undersigned shall provide written notice to Olshan Grundman Frome Rosenzweig &
Wolosky LLP of (i) any of their purchases or sales of the Common Stock of
Tandycrafts; or (ii) any shares over which they acquire or dispose of beneficial
ownership. Notice shall be given no later than 24 hours after each such
transaction.
5. Steel Partners II, L.P. ("Steel") hereby agrees to bear all
expenses incurred in connection with the Group's activities. Notwithstanding the
foregoing, Steel shall not be required to reimburse any nominee or party for (i)
out-of-pocket expenses incurred by a nominee in the aggregate in excess of $250
without Steel's prior written approval; (ii) the value of the time
<PAGE>
- --------------------------------------- --------------------------------
CUSIP No. 875386104 13D Page 13 of 15 Pages
- --------------------------------------- --------------------------------
of any party; (iii) legal fees incurred without Steel's prior written approval;
or (iv) the costs of any counsel, other than Steel's counsel, employed in
connection with any pending or threatened litigation.
6. The relationship of the parties hereto shall be limited to
carrying on the business of the Group in accordance with the terms of this
Agreement. Such relationship shall be construed and deemed to be for the sole
and limited purpose of carrying on such business as described herein. Nothing
herein shall be construed to authorize any party to act as an agent for any
other party, or to create a joint venture or partnership, or to constitute an
indemnification. Nothing herein shall restrict any party's right to purchase or
sell shares of Tandycrafts, as it deems appropriate, in its sole discretion. Nor
shall anything herein be construed to require any party to deliver a written
consent to the Group or to refrain from revoking any consent after it has been
given or to propose a slate of nominees to the Board of Directors of
Tandycrafts.
7. This Agreement may be executed in counterparts, each of
which shall be deemed an original and all of which, taken together, shall
constitute but one and the same instrument, which may be sufficiently evidenced
by one counterpart.
8. In the event of any dispute arising out of the provisions
of this Agreement, the parties hereto consent and submit to the exclusive
jurisdiction of the Federal and State Courts
in the State of New York.
9. Any party hereto may terminate his obligations under this
agreement at any time on 24 hours written notice to all other parties, with a
copy by fax to Steven Wolosky at Olshan Grundman Frome Rosenzweig & Wolosky LLP,
Fax No. 212 755-1467.
10. Each party acknowledges that Olshan Grundman Frome
Rosenzweig & Wolosky LLP shall act as counsel for both the Group and Steel.
<PAGE>
- --------------------------------------- --------------------------------
CUSIP No. 875386104 13D Page 14 of 15 Pages
- --------------------------------------- --------------------------------
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed as of the day and year first above written.
STEEL PARTNERS II, L.P.
150 East 52nd Street
New York, NY 10022
By: Steel Partners, L.L.C.
General Partner
By: /s/ Warren Lichtenstein
-------------------------------------------
Warren Lichtenstein, Managing Member
/s/ Warren G. Lichtenstein
---------------------------------------------
Warren G. Lichtenstein
<PAGE>
- --------------------------------------- --------------------------------
CUSIP No. 875386104 13D Page 15 of 15 Pages
- --------------------------------------- --------------------------------
-----------------------------------
Mark E. Schwarz
NEWCASTLE PARTNERS, L.P.
4514 Cole Avenue
Suite 600
Dallas, TX 75205
By: /s/ Mark E. Schwarz
---------------------------------
Mark E. Schwarz, General Partner
