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FORT WORTH, Texas - Tandy Leather Factory, Inc. (NASDAQ:TLF), currently valued at $37 million in market capitalization, has finalized the sale of its headquarters, distribution center, and flagship store, the company announced today. According to InvestingPro data, the company maintains a strong financial position with more cash than debt on its balance sheet. The facilities were acquired by Colonna Brothers, Inc., and Tandy has entered into lease agreements to remain on the premises until approximately September 2025.
As part of its strategic relocation plan, Tandy Leather has signed a ten-year lease for new headquarters and distribution space at Chisolm 20 Commerce Park in Benbrook, Texas. The lease for the 134,000 square foot space will begin in July, with rent payments starting after September 2025, amounting to roughly $111,000 per month.
In a move to reward its shareholders, Tandy’s Board of Directors has declared a special cash dividend of $1.50 per share to be paid on February 18, 2025, to stockholders of record as of February 3, 2025. The company has demonstrated solid profitability with a healthy gross margin of 56.8% in the last twelve months. InvestingPro analysis suggests the stock is currently trading below its Fair Value, with additional insights available to subscribers.
Chairman Jeff Gramm expressed satisfaction with the sale and the subsequent benefits for the company’s stakeholders. "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," he stated.
Johan Hedberg, CEO of Tandy Leather, acknowledged the challenges ahead, including the headquarters move and the relocation of the company’s most profitable retail store. He emphasized his commitment to returning the company to a profitable growth trajectory.
Additionally, the company announced the departure of current Director Eric Speron from the Board, effective January 31, 2025. Speron credited the successful sale to the strength of the Fort Worth market and the efforts of the team involved.
Tandy Leather Factory is a leading supplier of leathercraft products, operating 99 North American stores and one in Spain. The company maintains exceptional liquidity with a current ratio of 6.39, demonstrating strong short-term financial health. The company’s common stock is traded on the Nasdaq Capital Market under the ticker symbol TLF. For comprehensive financial analysis and additional ProTips, visit InvestingPro.
This news is based on a press release statement from Tandy Leather Factory, Inc.
In other recent news, Tandy Leather Factory Inc. has finalized the sale of its corporate headquarters, including its primary distribution center and flagship store in Fort Worth, Texas. The transaction, completed with Colonna Brothers, Inc., involved a gross cash purchase price of $26.5 million. Despite the sale, Tandy Leather will continue to operate from these facilities under lease agreements until its expected relocation in the third quarter of 2025.
The company also announced the renewal of its stock repurchase program, allowing it to buy back up to $5 million of its own common stock in open market transactions until September 30, 2026. These developments are part of Tandy Leather’s broader strategy to optimize its asset base and invest in growth opportunities.
InvestingPro analysis reveals a strong financial position for the company, with a current ratio of 6.39, indicating a robust liquidity position. Forward-looking statements regarding the company’s expectations for future operations and financial performance have been included in a recent 8-K filing with the Securities and Exchange Commission (SEC). These recent developments highlight Tandy Leather’s strategic financial maneuvers and ongoing efforts to optimize operations.
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