Tandycrafts files for Chapter 11 protection
Tandycrafts Inc., the former parent organisation to Tandy Leather, announced last week that it had filed for Chapter 11 protection in the Bankruptcy Court for the District of Delaware.
The development followed on from the company’s announcement earlier in the week that it had been delisted from the New York Stock Exchange (NYSE) for not maintaining its average share price above the $1/30 day threshold, and that it had missed its May 1 interest payment to lenders
Financial pressure has caused Tandycrafts to sell much of its non-core assets over the last year. As well as selling its Tandy Leather unit to The Leather Factory in December, it sold its Cargo Furniture unit in February. The company has also recently announced its intention to abandon its unprofitable framed-art business and focus solely on the production of picture frames
Chapter 11 filing is designed to afford businesses experiencing difficulties protection from their creditors, while they undergo restructuring.
