The company, which is being delisted from the NASDAQ, is to dispose of certain assets to pay off its lender Salus Capital Partners, according to a filing with the Securities and Exchange Commission (SEC), after which it will discontinue its operations.
The disposal includes real estate, equipment, inventory, fixtures and intellectual property. Tandy Brands also expects to sell its remaining inventory of Walmart men’s and boys’ belts to the retailer over the next several months.
The filing also said that in light of the financial and operating losses incurred by the company since 2008, and the current loan defaults, it had been unable to secure financing to support a reorganization under Chapter 11 bankruptcy.
Last August, N. Roderick McGeachy III, the company’s chairman/president/ceo, announced his resignation after he tried to solve the company’s financial woes.
At the time, Tandy Brands said McGeachy’s departure was not a result of any conflict with the company’s board, but he wanted to be close to family and pursue other opportunities.