UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 SCHEDULE 13G Under the Securities Exchange Act of 1934 (Amendment No. 7) 1 The Leather Factory, Inc. -------------------------------------------------------------------------------- (Name of Issuer) Common Stock, $.0024, Par Value -------------------------------------------------------------------------------- (Title of Class of Securities) 522126101 -------------------------------------------------------------------------------- (CUSIP Number) -------- 1 The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page. The information required in the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). ------------------------------------ ----------------------------------- CUSIP No. 522126101 13G Page 2 of 5 Pages -------------------------- ------- ------- ------------------------------------ ----------------------------------- -------------------------------------------------------------------------------- 1. NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) The Leather Factory, Inc. Employees' Stock Ownership Plan and Trust -------------------------------------------------------------------------------- 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] (b) [ ] Not applicable -------------------------------------------------------------------------------- 3. SEC USE ONLY -------------------------------------------------------------------------------- 4. CITIZENSHIP OR PLACE OF ORGANIZATION Texas, USA -------------------------------------------------------------------------------- NUMBER OF 5. SOLE VOTING POWER SHARES 808,539 ------------------------------------------------------- BENEFICIALLY 6. SHARED VOTING POWER OWNED BY None ------------------------------------------------------- EACH 7. SOLE DISPOSITIVE POWER REPORTING 808,539 ------------------------------------------------------- PERSON WITH 8. SHARED DISPOSITIVE POWER None -------------------------------------------------------------------------------- 9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 808,539 -------------------------------------------------------------------------------- 10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES* Not applicable [ ] -------------------------------------------------------------------------------- 11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9 8.16 -------------------------------------------------------------------------------- 12. TYPE OF REPORTING PERSON* EP -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! Item 1. (a) Name of Issuer: -------------- The Leather Factory, Inc. (b) Address of Issuer's Principal Executive Offices: ----------------------------------------------- 3847 East Loop 820 South Fort Worth, Texas 76119 Item 2. (a) Name of Person Filing: --------------------- The Leather Factory, Inc. Employees' Stock Ownership Plan and Trust (b) Address of Principal Business Office or, if none, Residence: ----------------------------------------------------------- Arlington National Bank 410 W. Abram Street Arlington, Texas 76010 (c) Citizenship: ----------- Not Applicable (d) Title of Class of Securities: ---------------------------- Common Stock, $0.0024 par value (e) CUSIP Number: ------------ 522126101 Item 3. Type of Reporting Person: ------------------------ Employee Benefit Plan Item 4. Ownership: --------- (a) Amount Beneficially Owned: ------------------------- 808,539 shares of Common Stock Page 3 of 5 Pages ----------------- (b) Percent of Class: ---------------- 8.16 (c) Number of Shares as to which such person has: -------------------------------------------- (i) Sole power to vote or to direct the vote: 808,539 (ii) Shared power to vote or to direct the vote: -0- (iii) Sole power to dispose or to direct the disposition of: 808,539 (iv) Shared power to dispose or to direct the disposition of: -0- Item 5. Ownership of Five Percent or Less of a Class: -------------------------------------------- Not Applicable. Item 6. Ownership of More than Five Percent on Behalf of Another Person: --------------------------------------------------------------- Not Applicable. Item 7. Identification and Classification of the Subsidiary Which Acquired the ----------------------------------------------------------------------- Security Being Reported on by the Parent Holding Company: -------------------------------------------------------- Not Applicable. Item 8. Identification and Classification of Members of the Group: --------------------------------------------------------- Not Applicable. Item 9. Notice of Dissolution of Group: ------------------------------ Not Applicable. Item 10. Certification: ------------- Not Applicable. Page 4 of 5 Pages ----------------- SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Date: February 09, 2001 The Leather Factory, Inc. Employees' Stock Ownership Plan and Trust By: Arlington National Bank /s/ Robert D. Roten ------------------------------------------ Robert D. Roten, Executive Vice President Page 5 of 5 Pages -----------------