Tandy Leather Factory sold its headquarters, leased new space, and declared a special dividend for shareholders.
Quiver AI Summary
Tandy Leather Factory, Inc. announced the sale of its corporate headquarters and distribution center in Fort Worth, Texas, to Colonna Brothers, Inc., while entering lease agreements to stay until September 2025. They have secured a ten-year lease for new facilities in Benbrook, Texas, starting in July 2025. The company declared a special cash dividend of $1.50 per share to stockholders, with distribution planned for February 18, 2025. Chairman Jeff Gramm expressed satisfaction with the sale and the new location, emphasizing the goal of enhancing profitability and returning cash to shareholders. CEO Johan Hedberg acknowledged the challenges of the upcoming moves but is committed to returning the company to a growth trajectory. The announcement also included the upcoming resignation of Director Eric Speron.
Potential Positives
- The company successfully sold its corporate headquarters facilities, monetizing an under-utilized asset for the benefit of shareholders.
- Tandy Leather has secured a new, appropriately sized headquarters and distribution space that will support its operations for the next decade.
- The Board of Directors declared a special cash dividend of $1.50 per share to stockholders, demonstrating a commitment to returning value to shareholders.
- Management expressed positive outlooks for future growth, aiming to improve profitability and maintain a strong market position as a leading leathercraft supplier.
Potential Negatives
- The sale of the corporate headquarters and flagship store suggests potential instability or restructuring within the company, which may raise concerns among investors and customers about its long-term strategy.
- The acknowledgment by the CEO of "higher expenses associated with our new leased facilities" could indicate future financial strain on the company, potentially affecting profitability.
- The departure of a current board director may signal governance issues or shifts in strategic direction that could be unsettling to stakeholders.
FAQ
What recent real estate transaction did Tandy Leather Factory complete?
Tandy Leather Factory sold its corporate headquarters and distribution center to Colonna Brothers, Inc. while entering lease agreements for temporary use.
Where will Tandy Leather's new headquarters be located?
The new headquarters will be at Chisolm 20 Commerce Park in Benbrook, Texas, a few miles from its current location.
What special dividend was declared by Tandy Leather's Board of Directors?
The Board declared a special cash dividend of $1.50 per share to stockholders, payable around February 18, 2025.
What is the size and lease term for Tandy Leather's new facility?
The new facility will be approximately 134,000 square feet and the lease runs for ten years, from July 2025 to September 2035.
Who will be stepping down from Tandy's Board of Directors?
Current Director Eric Speron will step down from the Board on January 31, 2025, after a notable tenure.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$TLF Hedge Fund Activity
We have seen 9 institutional investors add shares of $TLF stock to their portfolio, and 5 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- JCP INVESTMENT MANAGEMENT, LLC added 2,421 shares (+0.3%) to their portfolio in Q3 2024, for an estimated $10,143
- UBS GROUP AG added 2,400 shares (+inf%) to their portfolio in Q3 2024, for an estimated $10,056
- DIMENSIONAL FUND ADVISORS LP added 2,114 shares (+9.3%) to their portfolio in Q3 2024, for an estimated $8,857
- GEODE CAPITAL MANAGEMENT, LLC added 1,711 shares (+6.3%) to their portfolio in Q3 2024, for an estimated $7,169
- VANGUARD GROUP INC added 1,582 shares (+8.3%) to their portfolio in Q3 2024, for an estimated $6,628
- TOWER RESEARCH CAPITAL LLC (TRC) added 742 shares (+115.6%) to their portfolio in Q3 2024, for an estimated $3,108
- VALUES FIRST ADVISORS, INC. removed 642 shares (-1.6%) from their portfolio in Q3 2024, for an estimated $2,689
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Full Release
FORT WORTH, Texas, Jan. 29, 2025 (GLOBE NEWSWIRE) -- Tandy Leather Factory, Inc. (the “Company”, Nasdaq: TLF) today announced that it had closed on the sale of its corporate headquarters facilities, including its primary distribution center and flagship retail store, to Colonna Brothers, Inc. Concurrently with the closing, the Company entered into lease agreements to remain in its current spaces until approximately September 2025. The Company is continuing to seek a new location for its Fort Worth flagship store, which remains open at its current site.
The Company also announced that on January 28, 2025, it entered into a ten-year lease for new headquarters and distribution space at Chisolm 20 Commerce Park in Benbrook Texas, a few miles from its current offices. The lease, for approximately 134,000 square feet, will commence in July (with rent abated through September 2025) and runs through September 2035. Initial rent will be approximately $111,000 per month (including taxes, maintenance and other net charges).
The Company also announced that its Board of Directors had declared the payment of a special cash dividend to its stockholders of $1.50 per share of common stock held. The dividend will be paid on or about February 18, 2025, to stockholders of record at the close of trading on February 3.
Jeff Gramm, the Company’s Chairman, said, “We are happy to have closed the sale of Tandy’s current facilities and to have found a new space that will keep Tandy headquartered in the Fort Worth area. Our new space is better sized for Tandy’s operations, and these transactions have allowed us to monetize an under-utilized asset for the benefit of our owners. We are pleased to be able to return a substantial portion of the sale proceeds to our stockholders in the form of a dividend. After we have successfully executed our headquarters and flagship store moves, the board will consider paying an additional special dividend to our stockholders. As we look to the future, our goals are straightforward. We want to grow our sales, improve our profitability, and return excess cash to shareholders, all while solidifying our position as the world’s leading leathercraft supplier.”
Johan Hedberg, the Company’s CEO, added, “In my first few weeks at Tandy Leather, I’ve been impressed by the energy of our employees and their passion for leathercrafting and our customers. We have our work cut out for us this year, with a complicated headquarters move and the relocation of our most profitable retail store. Tandy will also have to contend with higher expenses associated with our new leased facilities. I know we are up to the challenge, and my goal is to return this company to a profitable growth trajectory while continuing to provide top-notch products, service and engaging leather crafting classes at all our store locations to our dedicated customers.”
The Company further announced that current Director Eric Speron will step down from the Company’s Board as of January 31, 2025. Mr. Speron stated, “Realizing an asset value north of our asking price for our headquarters buildings was the product of the strength of the Fort Worth market but also the people involved who showed patience, preparation and resolve. It has been an honor to work closely alongside our chairman and the Board. I look forward to seeing them, our management and employees continue to work with the same determination demonstrated during my tenure.”
Tandy Leather Factory, Inc. (http://www.tandyleather.com), headquartered in Fort Worth, Texas, is a specialty retailer of a broad product line, including leather, leatherworking tools, buckles and adornments for belts, leather dyes and finishes, saddle and tack hardware, and do-it-yourself kits. The Company distributes its products through its 99 North American stores (including two temporarily closed for relocation) located in 40 US states and six Canadian provinces, and one store located in Spain. Its common stock trades on the Nasdaq Capital Market under the symbol “TLF”. To be included on Tandy Leather Factory's email distribution list, go to: http://www.b2i.us/irpass.asp?BzID=1625&to=ea&s=0.
Contact: Jeff Gramm, Tandy Leather Factory, Inc. (817) 872-3200 or [email protected]
This news release may contain statements regarding future events, occurrences, circumstances, activities, performance, outcomes and results that are considered "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results and events may differ from those projected as a result of certain risks and uncertainties. These risks and uncertainties include but are not limited to: changes in general economic conditions, negative trends in general consumer-spending levels, failure to realize the anticipated benefits of opening retail stores; availability of hides and leathers and resultant price fluctuatio ns; change in customer preferences for our product, and other factors disclosed in our filings with the Securities and Exchange Commission. These forward-looking statements are made only as of the date hereof, and except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.