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Provides Update on Results Achieved from March 18 th Restructuring Plan
Announces New Credit Facilities
DALLAS, July 26, 2013 (GLOBE NEWSWIRE) -- Tandy Brands Accessories, Inc. (Nasdaq:TBAC) today provided an update on the results achieved from its restructuring plan announced March 18
th and announced the execution of new credit facilities.
"We learned some tough lessons in fiscal year 2013. Today we are pleased to announce that we have not only executed our previously announced restructuring plans, but we have also finalized a new capital structure, both of which we expect will improve our competitive and financial position as we begin fiscal 2014," said Rod McGeachy, President and Chief Executive Officer. "Furthermore, I am pleased that we were able to accomplish this with no equity dilution to our current shareholders," continued McGeachy.
Update on Restructuring Plan
The restructuring plan, announced on March 18, 2013, was designed to increase profitability for the Company, improve working capital efficiency, improve customer service and reduce overhead. The key elements of the plan included:
Eliminating low-volume products
Emphasizing licensed products and high volume private label products
Reducing the amount of risk associated with the Gifts business
Reducing corporate employee headcount by approximately 32%
Closing or downsizing four of eight leased facilities
Outsourcing and relocating Gifts distribution from Dallas to a third-party provider in California
Exiting development efforts and accelerating recognition of future expenses associated with non-core brands
The Company has successfully reduced the risk profile associated with its Gifts business, which was the primary source of the fiscal 2013 financial issues, by significantly reducing product return privileges, limiting margin agreements with retailers, locking freight rates, exiting underperforming products, and relocating and outsourcing its Gifts distribution function.