Leather Retailer Settles With SEC for Gaps in Inventory Controls

A specialty leather retailer and its former CEO have agreed to pay $225,000 to settle SEC charges that flawed inventory controls triggered a multi-year restatement.

Tandy Leather Factory Inc.’s inventory tracking system didn’t keep historical price information and resulted in inaccurate values that were fed into the company’s accounting for inventory, net income, and gross profits, according to the Securities and Exchange Commission settlement order released Wednesday.

Following a 2019 audit committee probe, the company, based in Fort Worth, Texas, restated its full-year financial results for 2017 and 2018 and one quarter of 2019, showing wide swings in those figures. ...