CONTACT: 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 COMPLETES SALE OF J-MAR UNIT
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FORT WORTH, Texas, June 6, 2000 - Tandycrafts, Inc. (NYSE: TAC) today announced
it has completed the sale of its Waco, Texas-based J-Mar unit to Florida-based
Universal Designs, Inc. Terms of the transaction were not disclosed.
The Fort Worth, Texas-based consumer products maker and marketer said the sale
of J-Mar, which makes inspirational gifts and stationery, is the first
divestiture as part of the Company's strategic plan announced earlier this year.
Tandycrafts' plan, announced in February 2000, entails selling its non-core
Gifts and Office Supply divisions; focusing the Company on its core frames and
wall decor, home furnishings and consumer direct operations; and making key
operational improvements and cost reductions. Tandycrafts said it currently
expects to complete the sale of its two other Gift division units, Licensed
Lifestyles and Rivertown Button, during the current quarter, which ends June 30.
Tandycrafts said the net cash proceeds from the sale of J-Mar were in line with
the Company's expectations. The Company will use the proceeds to reduce debt.
"We are aggressively executing our strategic plan and are on track to emerge in
fiscal 2001 as a more focused and profitable company," said Michael Walsh,
Tandycrafts' chairman of the board and chief executive officer. "The sale of J-
Mar is another important step in this process as we push to complete the bulk of
our operating initiatives and exit our Gifts and Office Supplies business units
this quarter."
Tandycrafts announced last week it ceased production at its California frame
manufacturing facility and is completing the move of equipment to its new state-
of-the-art production facility in Durango, Mexico to double that plant's
production capacity. Tandycrafts also has completed the centralization of
distribution for its frames and wall decor and home furnishings divisions at its
headquarters in Fort Worth.
"We are following through on our commitment to affect significant change and
generate long-term profitability for Tandycrafts," said Jim Allen, president and
chief operating officer. "We are among the leaders in the core markets we serve,
and we see tremendous opportunity to build our market share in the future."
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TANDYCRAFTS/ PAGE 2 OF 2
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.
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,
successful implementation of this strategic plan, 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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