SECURITIES AND EXCHANGE COMMISSION
                                WASHINGTON, D.C.

                                    Form 8-K

                             CURRENT REPORT PURSUANT

                          TO SECTION 13 OR 15(d) OF THE

                         SECURITIES EXCHANGE ACT OF 1934

       Date of report (Date of earliest event reported): December 20, 2001
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                            The Leather Factory, Inc.
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             (Exact Name of Registrant as Specified in Its Charter)


                                    Delaware
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                 (State or Other Jurisdiction of Incorporation


         1-12368                                        75-2543540
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(Commission File Number)                    (IRS Employer Identification Number)


3847 East Loop 820 South, Fort Worth, Texas                             76119
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(Address of Principal Executive Offices)                              (Zip Code)


                                 (817) 496-4414
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              (Registrant's Telephone Number, Including Area Code)


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          (Former Name or Former Address, if Changed Since Last Report)




Item 5.  Other Events

         The Leather Factory,  Inc. is announcing plans to expand the operations
of its Tandy  Leather  Company  subsidiary  through  the  introduction  of Tandy
Leather retail stores beginning in January 2002. The Registrant anticipates that
it will  open  most of these  stores  as new  stores,  although  it may  acquire
existing  leathercraft  stores and convert them to Tandy  Leather  stores if the
opportunity  arises on attractive  terms. The Registrant plans to fund these new
stores with cash flow and profits from operations. Therefore, the speed at which
these new stores can be opened will be dependent on future earnings.

         At present,  the Registrant  sells Tandy Leather  products  through the
Internet, by catalogue sales, and through wholesalers.

         This filing may contain forward-looking statements. All forward-looking
statements made here or in other filings made by The Leather  Factory,  Inc. are
based  on  current   expectations   as  of  the  date  of  the  release.   These
forward-looking  statements involve risks and uncertainties that could cause the
results of The Leather  Factory,  Inc. to differ  materially  from  management's
current  expectations.  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  and the most  recent
quarterly report on Form 10-Q. In addition, investors should be aware that there
are business risks  associated  with opening a new line of retail stores.  These
risks include the possibility that stores will not be economically successful or
that economic conditions will impede their profitability.

Item 9.  Regulation FD Disclosure

         The Registrant is issuing the following press release:

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FOR IMMEDIATE RELEASE                                          December 21, 2002


           Leather Factory Adds New Strategy for Tandy Leather Company

FORT WORTH, TEXAS - The Leather Factory,  Inc. (AMEX: TLF) today announced plans
to  expand  its  Tandy  Leather  Company   subsidiary   ("Tandy")   through  the
introduction  of Tandy  Leather  retail  stores  beginning in January  2002.  At
present,  Tandy products are sold through the Internet,  by catalogue  sales and
through wholesalers.

The company  anticipates that it will open most new Tandy outlets as new stores,
although it may acquire existing  leathercraft  stores and convert them to Tandy
stores if the  opportunity  arises with attractive  terms.  The exact number and
locations of the anticipated  stores has not been released,  however the company
indicated that more details would be announced soon.

Wray Thompson, Chairman and Chief Executive Officer of The Leather Factory, Inc.
commented, "Tandy traces its origins back to 1919, and for this reason, the name
has high  recognition  within our industry.  We believe that Tandy's core market
group is the retail customer. When we acquired Tandy, our focus was to re-center



its  existing  product  line  and  operating   processes,   while  planning  and
positioning the company for potential growth options. We still have some work to
do, but believe that the best  opportunity for growth is through the development
of Tandy  Leather  retail  stores.  Also,  we think that we can apply our retail
experience  with The  Leather  Factory  outlets  to our new Tandy  stores."  The
company presently  operates 30 sales and distribution  units located in nineteen
states and Canada under "The Leather Factory" name.

Mr. Thompson added,  "We will not leverage our future to open these stores.  Our
plan is to  open  Tandy  stores  from  cash  flow  and  profits  generated  from
operations.  The speed at which we open these stores will be dependent on future
earnings."

Tandy will  continue  offering its  products  through the  Internet,  mail-order
catalogues and wholesalers.

The Leather  Factory,  Inc.,  (http://www.leatherfactory.com),  headquartered in
Fort Worth, Texas, is an international  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  kits,  and  is  a  manufacturer  and
distributor of fancy hat trims, leather lacing and kits. The Company distributes
its products through 30 sales and distribution units located throughout the U.S.
and  Canada  and  through   its   subsidiary,   Tandy   Leather   Company,   via
mail/telephone/website  orders  (http://www.tandyleather.com).  Its common stock
trades on the American Stock Exchange with the symbol "TLF".

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                                   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 hereunto duly authorized.

                                            THE LEATHER FACTORY, INC.



Date: December 20, 2001                 BY: /s/ Wray Thompson
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                                           Wray Thompson, Chairman of the Board,
                                           President and Chief Executive Officer