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Tandy Brands Provides Update On Current Events

The Company expects net revenues to decline in fiscal 2014 while reducing operating expenses by a significantly greater percentage. The Company estimates pre-tax charges related to the restructuring will be in the range of $10.6 to $13.8 million as follows:

  Second Fiscal Quarter  Third Fiscal Quarter  Fourth Fiscal Quarter 
   December 31, 2012   March 31, 2013  June 30, 2013
         
Inventory write-off $6.0 - $7.0 million   $ -  $ -   
Severances  $ -  $0.6 - $0.7 million   $ -  
Intangibles impairment $ -  $2.0 - $3.5 million  $ -   
Other charges $ -   $1.6 - $2.0 million  $0.4 to $0.6 million
Total  $6.0 - $7.0 million   $4.2 - $6.2 million  $0.4 to $0.6 million

"Tandy Brands has a stable core business and we expect our improved cost structure and strategic operational focus to drive positive overall performance and enhance our competitive position going forward," continued Mr. McGeachy.

Updates on negotiations with senior lender to address covenant violation

Tandy Brands confirmed it is in breach of the fixed-charge coverage covenant and is in negotiations with its senior lender to address this violation. 

"Today, although we are in violation of the fixed-charge coverage covenant, we remain in compliance with the liquidity covenants with our senior lender and we expect to obtain a waiver for this covenant violation in the next few weeks," said McGeachy. 

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