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News Breaks | | | | March 8, 2013 | | 10:23 EDT |  | TBAC | Tandy Brands appoints John LIttle as Chief Restructuring Officer
Tandy Brands Accessories 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 CEO 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. 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." The company has engaged the services of John Little as Chief Restructuring Officer. Responsibilities include: Evaluating capital structure alternatives and identifying additional sources of financing; Developing and executing plans to improve liquidity against existing assets; Executing profitability improvement initiatives. The company also announced plans to file its quarterly report on Form 10-Q for the fiscal second quarter ended December 31, 2012 on or before April 22, 2013. | |
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News For TBAC From The Last 14 Days Check below for free stories on TBAC the last two weeks. |
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| May 14, 2013 | | 13:35 EDT |  | TBAC | Tandy Brands reports Q3 EPS ($1.19) vs. (43c) a year ago
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