CONTACT: Jim Allen, Leo Taylor
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 CONCLUDES PRODUCTION AT CALIFORNIA PLANT
COMPANY PLANS TO DOUBLE PRODUCTION CAPACITY AT ITS MEXICO PLANT
FORT WORTH, Texas, May 31, 2000 - In line with its previously announced
strategic plan to reorganize its Pinnacle Art & Frame unit, Tandycrafts, Inc.
(NYSE: TAC) today announced it has ceased production at its Van Nuys, Calif.
frame manufacturing and distribution facility.
Tandycrafts, a Fort Worth-based maker and marketer of products for the home and
office, unveiled a strategic plan in fiscal 1999 aimed at improving efficiency
and customer service within its Pinnacle unit. The Company said it would be
shifting manufacturing operations from the Van Nuys facility to its new state-
of-the-art production facility in Durango, Mexico. The plan also called for the
transfer of Pinnacle's distribution operations to Tandycrafts' corporate
facility in Fort Worth. In addition, the Company centralized Pinnacle's product
development, design, sales and administration functions that were previously
located in California to the Fort Worth headquarters.
"We are committed to positioning Pinnacle as a world-class manufacturer of
frames and wall decor," said Jim Allen, president of Pinnacle and president and
chief operating officer of Tandycrafts. "To do that, we must have superior
products and a more efficient cost structure. The closure of the Van Nuys
facility was difficult from an employee perspective, but has been a positive
step for Tandycrafts."
Tandycrafts said it will double its production capacity in Durango over the next
several months as it transfers production lines from the Van Nuys facility to
the Mexico facility. The company plans to hire an additional 200 workers to
supplement the approximately 400 current employees as the transfer of the
production lines progresses.
"Pinnacle remains a key component of Tandycrafts' future success, and we are
committed to providing it with the financial and operational resources for
growth," Allen said. "Shifting production to the new Durango facility gives
Pinnacle the capacity and capabilities it needs to become the leader in the
frames and wall decor market."
Tandycrafts, Inc. (www.tandycrafts.com) is a leading maker and marketer of
consumer products, including frames and wall decor, office supplies, home
furnishings and gift products. 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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