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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0001010549-01-000037.txt : 20010214
<SEC-HEADER>0001010549-01-000037.hdr.sgml : 20010214
ACCESSION NUMBER:		0001010549-01-000037
CONFORMED SUBMISSION TYPE:	SC 13G
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20010213

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			LEATHER FACTORY INC
		CENTRAL INDEX KEY:			0000909724
		STANDARD INDUSTRIAL CLASSIFICATION:	LEATHER & LEATHER PRODUCTS [3100]
		IRS NUMBER:				752543540
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		SC 13G
		SEC ACT:		
		SEC FILE NUMBER:	005-46536
		FILM NUMBER:		1536978

	BUSINESS ADDRESS:	
		STREET 1:		3847 EAST LOOP
		STREET 2:		820 SOUTH
		CITY:			FT WORTH
		STATE:			TX
		ZIP:			76119
		BUSINESS PHONE:		8174964414

	MAIL ADDRESS:	
		STREET 1:		3847 EAST LOOP
		STREET 2:		820 SOUTH
		CITY:			FT WORTH
		STATE:			TX
		ZIP:			76119

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			LEATHER FACTORY INC EMPLOYEES STOCK OWNERSHIP PLAN & TRUST
		CENTRAL INDEX KEY:			0001033691
		STANDARD INDUSTRIAL CLASSIFICATION:	 []

	FILING VALUES:
		FORM TYPE:		SC 13G

	BUSINESS ADDRESS:	
		STREET 1:		P O BOX 17089
		CITY:			FORT WORTH
		STATE:			TX
		ZIP:			76102
		BUSINESS PHONE:		8174964414
</SEC-HEADER>
<DOCUMENT>
<TYPE>SC 13G
<SEQUENCE>1
<FILENAME>0001.txt
<TEXT>


                                  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).

<PAGE>


- ------------------------------------         -----------------------------------
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!

<PAGE>

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
                               -----------------

<PAGE>

         (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
                               -----------------

<PAGE>

                                    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
                               -----------------

</TEXT>
</DOCUMENT>
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