FORT WORTH, Texas, Oct. 15, 2010 (GLOBE NEWSWIRE) -- Tandy Leather Factory, Inc. (Nasdaq:TLF) today announced the closing of Mid-Continent Leather Sales, consisting of one store located in Coweta, OK. The company was acquired in January 2007.
Jon Thompson, Chief Executive Officer and President, stated, "We accomplished our goal when we acquired this company, which was the elimination of a competitor. Unfortunately, we have not been able to satisfactorily improve its performance to justify its continued operation. We expect to incur a charge of approximately $300,000 in the fourth quarter this year as a result of the store closing. That charge is primarily the write-off of the goodwill associated with the acquisition."
Shannon L. Greene, Chief Financial Officer, added, "While the decision was a difficult one, it has become apparent that declining sales and lack of profits generated at this store was not going to change, despite our efforts. The location of the store did not provide sufficient growth opportunities to keep the store open. We have retail stores in Oklahoma City and Tulsa whose locations are better suited to take advantage of Tandy Leather's stronger brand."
Tandy Leather Factory, Inc., (http://www.tandyleatherfactory.com), headquartered in Fort Worth, Texas, is a specialty retailer and wholesale distributor 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 29 Leather Factory stores, located in 19 states and 3 Canadian provinces, 76 Tandy Leather retail stores, located in 36 states and 6 Canadian provinces, and one combination wholesale/retail store located in the United Kingdom. Its common stock trades on the Nasdaq with 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">http://www.b2i.us/irpass.asp?BzID=1625&to=ea&s=0.
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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 fluctuations; 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.