Tandy Brands Accessories Inc announced that, consistent with its ongoing effort to streamline operations and improve profitability, it will cease distribution operations at the Company's facility in West Bend, Wisconsin during the third quarter of fiscal 2008.
Distribution that has been done at this facility will be transferred to either the Company's Dallas or Yoakum, Texas distribution facilities or may be outsourced to a well-respected, third-party vendor. The Company expects to conclude the majority of its distribution operations at the 264,000 square foot facility by January 31, 2008.
The Company has listed the facility for sale with a broker in West Bend. The Company anticipates that it will incur approximately $550,000 of additional costs for employee termination benefits and other expenses associated with this initiative during the fiscal second and third quarters ending December 31, 2007 and March 31, 2008.
J.S.B. Jenkins, President and Chief Executive Officer commented, "We are continuing to make the hard choices to eliminate overhead and to streamline our operations. The closing of this distribution center will improve the return we generate on our assets, focus our organization, and reduce costs. As we move forward, we believe that this transition will generate significant savings for the Company during fiscal 2009."
Tandy Brands Accessories Inc
Source at Fibre2fashion.com
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