-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EvRrqklehDr7/wZ2+Xm3M9uGHQkHp3CK493eWQfEGgr9PxtqlLJ3ucDYOM+NUOkM NCTvaOccuNYzfvKTm5g8Pg== 0000096294-01-500006.txt : 20010511 0000096294-01-500006.hdr.sgml : 20010511 ACCESSION NUMBER: 0000096294-01-500006 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010510 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010510 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TANDYCRAFTS INC CENTRAL INDEX KEY: 0000096294 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-MISCELLANEOUS SHOPPING GOODS STORES [5940] IRS NUMBER: 751475224 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-07258 FILM NUMBER: 1628771 BUSINESS ADDRESS: STREET 1: 1400 EVERMAN PKWY CITY: FORT WORTH STATE: TX ZIP: 76140 BUSINESS PHONE: 8175519600 MAIL ADDRESS: STREET 1: 1400 EVERMAN PKWY CITY: FORT WORTH STATE: TX ZIP: 76140 8-K 1 k8-framed_art.txt 8K FRAMED ART DIVISION DISCONTINUED SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report: May 8, 2001 Date of Earliest Event Reported: May 3, 2001 TANDYCRAFTS, INC. A DELAWARE CORPORATION 1-7258 75-1475224 ------ ---------- (Commission File Number) (IRS Employer Identification No.) 1400 Everman Parkway Fort Worth, Texas 76140 (817) 551-9600 ITEM 5. OTHER EVENTS (a) On May 3, 2001, Registrant issued a press release announcing that after a careful review of its strategic alternatives, it plans to exit its unprofitable framed art business. The Company also announced that it had entered into a forbearance agreement with its lenders through May 8, 2001 and that it did not pay its interest payment to its lenders due on May 1, 2001. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits. Exhibit Number Description ------- ----------- 99 On May 3, 2001, Registrant issued a press release announcing that after a careful review of its strategic alternatives, it plans to exit its unprofitable framed art business. The Company also announced that it had entered into a forbearance agreement with its lenders through May 8, 2001 and that it did not pay its interest payment to its lenders due on May 1, 2001. 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 thereunto duly authorized. TANDYCRAFTS, INC. Date: March 8, 2001 By:/s/ Michael J. Walsh ------------------------ Michael J. Walsh, Chairman and Chief Executive Officer Date: March 8, 2001 By:/s/ Leo Taylor ------------------------ Leo Taylor, Senior Vice President of Finance (Principal Finance Officer) EX-99 2 pr-framed_art.txt PRESS RELEASE ANNOUNCING ENDING FRAMED ART CONTACT: Leo Taylor (817) 551-9600 Tandycrafts, Inc. or FOR IMMEDIATE RELEASE Jeff Lambert, Tara Powers Lambert, Edwards & Associates, Inc. (616) 233-0500 ( mail@lambert-edwards.com) TANDYCRAFTS ANNOUNCES EXIT FROM FRAMED ART BUSINESS FORT WORTH, Texas, May 3, 2001 - Tandycrafts, Inc. (NYSE:TAC), a leading maker and marketer of picture frames and wall decor products, today announced that, after a careful review of its strategic alternatives, it plans to exit its unprofitable framed art business. Michael J. Walsh, the Company's Chairman and Chief Executive Officer stated that "the Company had expended a great deal of effort to reverse the operating losses and cash outflow from its framed art operations but ultimately was unsuccessful." The Company also announced that it has developed a transition plan to promptly exit the framed art business and to assist its current framed art customers. Mr. Walsh continued: "While difficult, the Company felt it more prudent to focus its resources on its profitable picture frame business." The Company stated that there would be no changes to its picture frame customers and that it intended to continue to service its picture frame customers as usual in a timely and efficient manner. The Company also announced that it had entered into a forbearance agreement with its lenders through May 8, 2001. The Company stated that it did not pay its interest payment to its lenders, which was due on May 1, 2001. During the forbearance period, the Company's lenders have agreed to forbear from taking possession of the loan's collateral, foreclosing or enforcing any liens, exercising any of the lenders' rights under any guaranty agreement or exercising its right to set off due to the failure to pay interest. The Company believes that the forbearance agreement was entered into principally due to the Company's decision to exit its unprofitable framed art business and to allow the Company and its lenders time to discuss and review the Company's future business plans. During this period, the Company intends to continue to explore the strategic alternatives of the Company. There can be no assurance that the Company will be able to refinance its current debt or reach an acceptable agreement with its current lenders on a timely basis. Until such time, the Company's liquidity will continue to be limited. Failure to obtain such refinancing or agreement would have a material adverse effect on the Company's liquidity, operations, financial condition and ability to operate as a going concern. - more - TANDYCRAFTS - PAGE 2 Tandycrafts, Inc. (www.tandycrafts.com) is a maker and marketer of picture frames and wall decor. Tandycrafts' products are sold nationwide through wholesale distribution channels, including mass merchandisers and specialty retailers. 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. Although Tandycrafts believes that the expectations in the forward looking statements are reasonable, Tandycrafts can give no assurance that such expectations or the forward looking statements will prove to be correct. 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 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. By making these forward-looking statements, Tandycrafts 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. The inclusion of any statement in this release does not constitute an admission by Tandycrafts or any other person that the events or circumstances described in such statement are material. ### -----END PRIVACY-ENHANCED MESSAGE-----