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 24, 1999
Date of Earliest Event Reported: June 22, 1999
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 June 22, 1999, Registrant issued a press release announcing it
had reacquired Fort Worth-based Cargo Furniture & Accents, a
leading national manufacturer and seller of children's and casual
furniture and accessories.
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 it had reacquired
Fort Worth-based Cargo Furniture & Accents, a
leading national manufacturer and seller of
children's and casual furniture and accessories.
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 24, 1999 By:/s/ Michael J. Walsh
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Michael J. Walsh, President
and Chief Executive Officer
Date: June 24, 1999 By:/s/ James D. Allen
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James D. Allen, Executive Vice
President and Chief Financial
Officer
Date: June 24, 1999 By:/s/ Troy A. Huseman
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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
Lambert, Edwards & Associates, Inc.(616) 233-0500
([email protected])
TANDYCRAFTS COMPLETES ACQUISITION OF CARGO FURNITURE
WILL FOCUS ON CONVERSION TO CARGO COLLECTION CONCEPT
FORT WORTH, Texas - June 22, 1999 - Tandycrafts, Inc. (NYSE: TAC) today
announced it has reacquired Fort Worth-based Cargo Furniture & Accents, a
leading national manufacturer and seller of children's and casual furniture and
accessories.
Tandycrafts, the Fort Worth-based maker and marketer of products for the home
and office, had sold Cargo to employees two-and-one-half years ago. As
previously reported, Tandycrafts was required earlier this year to perform under
a credit guaranty that was part of the January 1997 sale. Cargo Furniture
posted net sales of approximately $17 million in its fiscal year ended Dec. 31,
1998.
"The decision to re-acquire Cargo reflects the opportunity that exists for
growth and profitability at this operation," said Michael Walsh, Tandycrafts
president and chief executive officer. "While this acquisition was originally
initiated by Tandycrafts' bank guaranty, the new Cargo Collection stores have
proven to be a profitable format for selling furniture and building the Cargo
brand. We intend to accelerate the conversion of Cargo's unprofitable mall-
based furniture stores to the Collection format, which are based in high-traffic
strip malls, over the next 12 months."
Cargo introduced the Collection store format in 1998 in an effort to broaden the
range of furniture styles and decorative accessories it sells. Collection
stores are typically 4,000-square feet and feature full-room vignettes that
showcase furniture, wall decor, bedding and related accessories. Cargo also
sells home furnishings and related accessories to consumers and commercial
accounts through a nationwide network of dealers, and on the Internet at
www.cargohome.com.
"Our immediate priority is to complete the store conversion process at Cargo,
while simultaneously working to build on Cargo's recent growth in dealer and
commercial sales," said Jim Allen, executive vice president and chief operating
officer at Tandycrafts. "Cargo has a well-defined and executable strategy that
complements Tandycrafts' focus. We expect to see sustained performance
improvement at Cargo over the short and long-term."
Tandycrafts will convert Cargo's mall-based stores to the new Collection Store
concept as leases come up for renewal. The process, which will involve seven
stores, is expected to be complete within the next year.
"The measurable impact of the store conversion process, the continued support by
Cargo's supplier and dealer partners, and the opportunity for Tandycrafts to
broaden our reach in the home decor and home furnishings markets confirm our
decision to bring Cargo back into the Tandycrafts family," Allen concluded.
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TANDYCRAFTS/PAGE 2
Tandycrafts, Inc. (www.tandycrafts.com) is a leading manufacturer, distributor
and retailer of consumer products, including frames and wall decor, home
furnishings, office supplies and gifts. The Company's products are 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.
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.
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