CONTACT: TANDYCRAFTS, INC.
Leo Taylor (817) 551-9600 or
FOR IMMEDIATE RELEASE Brian Edwards, Tara Powers (616) 233-0500
THE LEATHER FACTORY, INC.
Wray Thompson, Shannon Greene (817) 496-4414
TANDYCRAFTS ANNOUNCES SALE OF
LEATHERCRAFTING DIVISION TO THE LEATHER FACTORY
Fort Worth, Texas, December 1, 2000 - Tandycrafts, Inc. (NYSE: TAC) today
announced it has completed the sale of its Tandy Leather Company operation to
Fort Worth, Texas-based The Leather Factory, Inc. (AMEX: TLF).
Tandycrafts, the Fort Worth, Texas-based consumer products maker and marketer,
said The Leather Factory acquired Tandy Leather for an undisclosed amount of
cash. Tandy Leather sells leather and leathercrafting products via mail order,
the Internet, and through a network of authorized dealers located in 20
countries. Tandy Leather had sales of approximately $7.2 million in the fiscal
year ended June 30, 2000.
"This transaction is a good strategic fit for Tandy Leather and a good value for
Tandycrafts shareholders," said Michael J. Walsh, Tandycrafts chairman and chief
executive officer. "Importantly, the completion of this sale allows us to better
focus on the abundant growth opportunities that exist for Tandycrafts in the
home decor market."
Wray Thompson, chairman, president and chief executive officer of The Leather
Factory, added: "We are pleased to have completed this sale with Tandycrafts.
With the acquisition of Tandy Leather, we expect our market share to increase in
the retail and wholesale industries, and as well as in the e-commerce sector.
In addition, the proprietary assets developed by Tandy Leather over the past 81
years, their staff of seasoned employees, and the economies of scale inherent in
a transaction of this type are major benefits of the acquisition."
The Leather Factory, Inc. (www.leatherfactory.com) is a multi-national marketer
and wholesale distributor of a broad product line including leather,
leatherworking tools, buckles and adornments for belts, leather dyes and
finishes, shoe repair supplies, saddle and tack hardware, and do-it-yourself
leathercraft kits, and is a manufacturer and distributor of fancy hat trims,
leather lacing, and kits. The Company distributes its products through 28 sales
and distribution units located throughout the United States and Canada.
Tandycrafts, Inc. (www.tandycrafts.com) is a leading maker and marketer of
consumer products, including frames and wall decor sold under the Pinnacle Art &
Frame brand and home furnishings sold through its Cargo Furniture subsidiary.
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.
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TANDYCRAFTS - PAGE 2 OF 2
Statements in this news release which are not purely historical facts are
forward-looking statements, including statements containing the words "believe",
"estimate", "project", "expect" or similar expressions. These statements are
made pursuant to the safe harbor provisions of Section 21E of the Securities
Exchange Act of 1934, as amended. All forward-looking statements are based upon
information available to Tandycrafts and The Leather Factory on the date of this
release. Any forward-looking statement inherently involves risks and
uncertainties that could cause actual results to differ materially from the
forward looking statements. With regard to Tandycrafts, factors that would cause
or contribute to such differences include, but are not limited to, continued
acceptance of Tandycrafts' products in the marketplace, successful
implementation of its strategic plan, the extension or refinancing of its
existing bank facility and the restrictions any such extension or refinancing
could place on Tandycrafts, the ability to obtain new financing from other
financing sources, the ability to generate positive cash flow from operations
and asset sales, competitive factors, dependence upon third-party vendors, and
other risks detailed in Tandycrafts' periodic report filings with the Securities
and Exchange Commission. With regard to The Leather Factory, many of these risks
and uncertainties are detailed from time to time in TLF's reports filed with the
Securities and Exchange Commission, including its most recent annual report on
Form 10-K. By making these forward-looking statements, Tandycrafts or The
Leather Factory do not undertake any obligation to update these statements for
revisions or changes after the date of this release. Readers are cautioned not
to place undue reliance on forward-looking statements.
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