Tandycrafts to Close Plant, Lay Off 400

Tandycrafts Inc., a Texas-based maker of home and office products, said it will close its plant in Van Nuys by the end of June, firing about 400 workers, or 18% of its work force, as part of a broader restructuring. The company has begun moving the work, mostly manufacturing of picture frames, to Durango, Mexico, and hopes to save about $5 million by moving south of the border, spokesman Brian Edwards said. Officials will move the Van Nuys plant’s distribution and sales operations to its headquarters in Forth Worth, Edwards said. The plant closing is part of a larger strategic plan to cut costs and increase revenue and the value of its stock, which fell 6 cents to close at $3 on the New York Stock Exchange. Other strategies include selling its gift and office supply stores and restructuring its wall decor and home furnishing units.

The company’s gifts unit includes a button and ribbon maker, a sports memorabilia marketer, a Christian-products seller and the 41-store Sav-On office supply chain that operates in 11 Southern states. Its revenue fell to $194.7 million in 1999 from $232.5 million in 1998, Edwards said. After the sale, the company will consist of three remaining businesses: Pinnacle Art & Frame, Cargo Furniture and Tandy Leather Direct, a mail order and Internet business.