Tandy Leather Factory sells its corporate headquarters amid financial turmoil
- Tandy Leather Factory has signed a Purchase and Sale Agreement to sell its corporate headquarters facilities to Colonna Brothers, Inc.
- The deal, valued at $26.5 million, is expected to close in January 2025, allowing Tandy to lease current spaces until September 2025.
- The company plans to issue dividends to stockholders from the net proceeds of the sale, providing financial returns to its investors.
In Fort Worth, Texas, Tandy Leather Factory, Inc. announced on December 6, 2024, that it has signed a Purchase and Sale Agreement to initiate the sale of its corporate headquarters facilities, which include the primary distribution center and flagship retail store. This agreement is with Colonna Brothers, Inc., and has been set at a sale price of $26.5 million, excluding taxes and expenses. The financial transaction is projected to finalize in January 2025. Once the deal closes, Tandy Leather intends to draft lease agreements that will allow the company to continue operating in its existing locations until approximately September 2025. This timeline provides Tandy with much-needed space to search for and prepare new headquarters and retail facilities within the Fort Worth area. Jeff Gramm, the Chairman of Tandy Leather Factory, expressed that this move aims to unlock value for stockholders, citing the company's long-established presence in Fort Worth over the past 100 years. Concurrently, Tandy Leather has been actively evaluating potential properties for its new headquarters and flagship store in the local vicinity. In addition to this significant sale, the Company also indicated its plans to distribute a portion of the sale proceeds as dividends to stockholders after accounting for expenses related to taxes, sale costs, and the relocation process. Tandy Leather's operational capabilities extend beyond its headquarters: it distributes its products through 99 retail stores located across 40 U.S. states, six Canadian provinces, and one store in Spain. The company's common stock is publicly traded on the Nasdaq Capital Market under the fitting ticker symbol 'TLF'. Notably, the announcement also included forward-looking statements regarding potential economic challenges and fluctuating market conditions that could affect the execution and benefits of the transaction, emphasizing the significance of keeping shareholders informed through various disclosures.