Tandy Leather Factory Completes HQ Sale, Signs New Lease, Announces Dividend.

Tandy Leather Factory has closed on the sale of its corporate headquarters facilities, including its primary distribution center and flagship retail store, to Colonna Brothers, Inc. The company will lease the spaces until approximately September 2025. Tandy Leather Factory is also seeking a new location for its Fort Worth flagship store. Concurrently, the company has entered into a ten-year lease for new headquarters and distribution space at Chisolm 20 Commerce Park in Benbrook, Texas.

Tandy Leather Factory, Inc. (TLF), a prominent player in the leathercraft industry, recently announced significant changes to its real estate portfolio. The company sold its corporate headquarters facilities, including its primary distribution center and flagship retail store, to Colonna Brothers, Inc. [1]. Simultaneously, TLF entered into a ten-year lease for new headquarters and distribution space at Chisolm 20 Commerce Park in Benbrook, Texas, starting in July 2025 [1].

The sale of the corporate headquarters and distribution center in Fort Worth is part of TLF's strategy to enhance profitability and return cash to shareholders. Chairman Jeff Gramm expressed satisfaction with the transaction, stating, "We are excited about the sale of our headquarters and the opportunity to lease back the space for the next several years. This transaction will allow us to focus on our core business and enhance profitability" [1].

TLF's new headquarters and distribution space in Benbrook will provide the company with an appropriately sized facility to support its operations for the next decade [1]. The sale of the under-utilized corporate headquarters facilities is expected to benefit shareholders by monetizing the asset.

In addition to the real estate transaction, TLF's Board of Directors declared a special cash dividend of $1.50 per share to stockholders [1]. This dividend demonstrates the company's commitment to returning value to shareholders.

The upcoming resignation of Director Eric Speron may signal potential governance issues or shifts in strategic direction within TLF [1]. However, management expressed a positive outlook for the future, aiming to improve profitability and maintain a strong market position as a leading leathercraft supplier.

Despite the challenges associated with the upcoming moves, TLF's management is committed to returning the company to a growth trajectory. The company will lease its former headquarters and flagship store until approximately September 2025 while searching for a new location for its Fort Worth flagship store [1].

Sources:
[1] https://www.nasdaq.com/articles/tandy-leather-factory-inc-completes-sale-headquarters-and-announces-new-lease-and-special