Tandy’s owners reap dividends from HQ sale
US retailer Tandy Leather Factory has sold its headquarters, including its primary distribution centre and flagship retail store, to food retailer Colonna Brothers, but will remain in its current spaces until September.
It will rent a building to house its headquarters in Benbrook Texas, a few miles from its current offices.
The company is searching for a new location for its Fort Worth flagship store.
Tandy chairman Jeff Gramm said: "Our new space is better sized for Tandy's operations, and these transactions have allowed us to monetise an under-utilised 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.”
New CEO Johan Hedberg 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."
Tandy Leather Factory 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) and one store in Spain.
