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Appoints John Little as Chief Restructuring Officer
Plans to file Form 10-Q on or before April 22, 2013
Provides updates on negotiations with senior lender to address covenant violation
DALLAS, March 8, 2013 (GLOBE NEWSWIRE) -- Tandy Brands Accessories, Inc. (Nasdaq:TBAC) today provided an update on current events.
"Because of the disappointing performance of a portion of our Gifts segment in December 2012 we violated the fixed-charge coverage covenant in our credit agreement with our senior lender," said Rod McGeachy, President and Chief Executive Officer of Tandy Brands. "Although total gross sales targets were met, the profit miss was driven by a highly promotional retail environment, which drove higher than expected sales allowances and higher returns of unsold inventories, both of which reduced our gift net sales in the quarter ended December 31, 2012."
Appoints John Little Chief Restructuring Officer
"Today, although we are in violation of the fixed-charge coverage covenant, we remain in compliance with the liquidity covenants with our senior lender. However, the profit miss and seasonal nature of our business has reduced our liquidity to a point we believe outside capital is necessary in the near term to solidify our balance sheet," said McGeachy. "To facilitate this, we are leveraging the capabilities of Deloitte Financial Advisory Services LLP, and specifically, the expertise of John Little."
The Company is pleased to engage the services of Mr. Little as Chief Restructuring Officer, and has provided the following biography for Mr. Little:
Mr. Little has over 25 years of management and leadership experience and specializes in corporate restructuring services including working capital management, debt capacity analysis, business plan analysis and development, performance improvement, vendor and business partner diligence, as well as many other business performance issues. He holds both the Chartered Financial Analyst (CFA®) and the Certified Turnaround Professional (CTP®) designations. Prior to joining Deloitte & Touche LLP, Mr. Little served as an active duty officer in U.S. Army Engineer and Special Forces (Green Beret) units. Mr. Little will remain a principal of Deloitte Financial Advisory Services LLP while he is engaged by the Company as a consultant.