CONTACT: Tandycrafts, Inc.
Leo Taylor (817) 551-9600
or
Brian Edwards, Jeff Lambert
FOR IMMEDIATE RELEASE Lambert, Edwards & Associates, Inc.
(616) 233-0500 (mail@lambert-edwards.com)
TANDYCRAFTS COMPLETES SALE OF
CARGO FURNITURE TO PIER 1 IMPORTS
FORT WORTH, Texas, February 23, 2001 - Tandycrafts, Inc. (NYSE: TAC) today
announced it has completed the sale of its Cargo Furniture unit to Fort Worth,
Texas-based retailer Pier 1 Imports, Inc. (NYSE: PIR) for initial proceeds of
approximately $3.4 million. Tandycrafts said it will use the proceeds from the
sale to pay down debt.
"The sale of Cargo completes our transition from a diversified consumer products
company to a focused leader in the frames and wall decor market," said Michael
Walsh, Tandycrafts Chairman and Chief Executive Officer. "This transaction
allows us to reduce our working capital needs, pay down debt, and put all our
time and resources into building the Pinnacle Art & Frame business. In the
near-term, this will include targeted cost reductions, productivity increases
and improvements in our operating efficiencies."
Fort Worth, Texas-based Tandycrafts also announced that it has eliminated over
30 positions through attrition or reductions in staff, reflecting the completion
of its strategic plan and its transition to a focused frames and wall decor
manufacturer and marketer. Tandycrafts also stated that Sheldon Stein had
resigned from the board of directors.
Following the completion of the sale of Cargo, Tandycrafts' outstanding balance
under its revolving credit facility will be approximately $32.4 million. The
Company's current revolving credit facility expires March 31, 2001.
While Tandycrafts continues its efforts to obtain alternative financing, there
can be no assurance that the Company will be able to secure such financing on a
timely basis. Until the Company completes its refinancing, its liquidity will
continue to be limited. Any failure to obtain adequate financing will have a
material adverse effect on Tandycrafts' liquidity, operations and financial
condition.
Tandycrafts, Inc. (www.tandycrafts.com) is the nation's #2 maker and marketer of
frames and wall decor. The Company's products are sold nationwide through
wholesale distribution channels, including mass merchandisers and specialty
retailers.
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TANDYCRAFTS/PAGE 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 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. 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 its strategic plan, the extension or refinancing of
its existing bank facility and the restrictions any such extension or
refinancing could place on the Company, 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 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. Readers are cautioned not
to place undue reliance on forward-looking statements.
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