-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 H5TGLHy05s2DtzKBZdz47E5dFVoz8Pmga570iAyYI6Wb27Z/EQxHwJL9eGSQ5Y4X
 VrOil9BlQo4mtTbng3v/7Q==

<SEC-DOCUMENT>0000950134-04-013272.txt : 20040908
<SEC-HEADER>0000950134-04-013272.hdr.sgml : 20040908
<ACCEPTANCE-DATETIME>20040907175727
ACCESSION NUMBER:		0000950134-04-013272
CONFORMED SUBMISSION TYPE:	SC 13D
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20040908
DATE AS OF CHANGE:		20040907
GROUP MEMBERS:		MICHAEL A NERY

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 13D
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	005-46536
		FILM NUMBER:		041019316

	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:			Nery Capital Partners, L.P.
		CENTRAL INDEX KEY:			0001299125
		IRS NUMBER:				841513454
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		SC 13D

	BUSINESS ADDRESS:	
		STREET 1:		22 SOUTH PACK SQUARE
		STREET 2:		SUITE 302
		CITY:			ASHEVILLE
		STATE:			NC
		ZIP:			28801
		BUSINESS PHONE:		828 225 5908

	MAIL ADDRESS:	
		STREET 1:		22 SOUTH PACK SQUARE
		STREET 2:		SUITE 302
		CITY:			ASHEVILLE
		STATE:			NC
		ZIP:			28801
</SEC-HEADER>
<DOCUMENT>
<TYPE>SC 13D
<SEQUENCE>1
<FILENAME>d18272sc13d.htm
<DESCRIPTION>SCHEDULE 13D
<TEXT>
<HTML>
<HEAD>
<TITLE>sc13d</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<BR clear="right">
<BR clear="right">

<P align="center"><FONT size="4">UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</FONT><BR>
<FONT size="3">Washington, D.C. 20549</FONT>

<P align="center"><FONT size="5">SCHEDULE 13D</FONT>

<P align="center"><FONT size="2">Under the Securities Exchange Act of 1934<BR>
(Amendment No. )*</FONT>

<P align="center" style="font-size: 24pt">THE LEATHER FACTORY, INC.<BR>
<HR size="1" noshade>
<CENTER><FONT size="2">(Name of Issuer)</FONT></CENTER>

<P align="center"><FONT size="2">Common Shares, $.0024 par value per share</FONT><BR>
<HR size="1" noshade>
<CENTER><FONT size="2">(Title of Class of Securities)</FONT></CENTER>

<P align="center"><FONT size="2">522126101</FONT><BR>
<HR size="1" noshade>
<CENTER><FONT size="2">(Cusip Number)</FONT></CENTER>

<P> <CENTER> <P align="center"><FONT size="2">Nery Asset Management, LLC</FONT><BR>
<FONT size="2">22 South Pack Square</FONT><BR>
<FONT size="2">Suite 302</FONT><BR>
<FONT size="2">Asheville, North Carolina 28801</FONT><BR>
<FONT size="2">Tel. No.: (828) 225-5908</FONT><BR>
<FONT size="2">Attention: Chief Operating Officer</FONT><BR>
<HR size="1" noshade>
<CENTER><FONT size="2">(Name, Address and Telephone Number of Person<BR>Authorized to Receive Notices and Communications)</FONT></CENTER>
</CENTER>


<P align="center"><FONT size="2">- with copies to -</FONT>

<P align="center"><FONT size="2">Eliot D. Raffkind<BR>Akin Gump Strauss Hauer &#38; Feld LLP<BR>
1700 Pacific Avenue, Suite 4100<BR>Dallas, Texas 75201-4618<BR>(214) 969-2800</FONT>


<P align="center"><FONT size="2">September 7, 2004</FONT><BR>
<HR size="1" noshade>
<CENTER><FONT size="2">(Date of Event Which Requires Filing of this Statement)</FONT></CENTER>
<P>
<FONT size="2">If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of &#167;&#167;240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box.</FONT> <FONT face="wingdings">&#120;</FONT>
<P>
<P><FONT size="2">Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See &#167;240.13d-7 for other parties to whom copies are to be sent.</FONT>
<P>
<P><FONT size="2"><SUP>*</SUP></FONT><FONT size="2"> The remainder of this cover page shall be filled out for a reporting person&#146;s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.</FONT>
<P>
<P><FONT size="2">The information required on the remainder of this cover page shall not be deemed to be &#147;filed&#148; for the purpose of Section 18 of the Securities Exchange Act of 1934 (&#147;Act&#148;) 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).</FONT>







<P align="center" style="font-size: 10pt">Page 1 of 7
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>



<DIV style="font-family: 'Times New Roman',Times,serif">



<TABLE width="100%" border="0" cellspacing="0" cellpadding="4">
<TR>
<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
<TD width="28%"><FONT size="2">&nbsp;</FONT></TD>
<TD width="14%"><FONT size="2">&nbsp;</FONT></TD>
<TD width="45%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
<TD colspan="7"><FONT size="2">CUSIP No. 522126101</FONT> </TD>
</TR>

<TR><TD colspan=7><HR noshade></TD></TR>

<TR>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">1.</FONT></TD>
<TD valign=top colspan=3><FONT size="2">Name of Reporting Person:<BR>Nery Capital Partners, L.P.</FONT></TD>
<TD valign=top colspan=2><FONT size="2">I.R.S. Identification Nos. of above persons (entities only):<BR>
84-1513454</FONT></TD>
</TR>

<TR><TD colspan=7><HR noshade></TD></TR>

<TR>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">2.</FONT></TD>
<TD valign=top colspan=5><FONT size="2">Check the Appropriate Box if a Member of a Group (See Instructions):</FONT></TD>
</TR>

<TR>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">(a)</FONT></TD>
<TD valign=top><FONT face="wingdings">&#111;</FONT></TD>
<TD valign=top colspan=3><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">(b)</FONT></TD>
<TD valign=top><FONT face="wingdings">&#120;</FONT></TD>
<TD valign=top colspan=3><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD colspan=7><HR noshade></TD></TR>

<TR>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">3.</FONT></TD>
<TD valign=top colspan=5><FONT size="2">SEC Use Only:</FONT></TD>
</TR>

<TR><TD colspan=7><HR noshade></TD></TR>

<TR>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">4.</FONT></TD>
<TD valign=top colspan=5><FONT size="2">Source of Funds (See Instructions):<BR>AF</FONT></TD>
</TR>

<TR><TD colspan=7><HR noshade></TD></TR>


<TR>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">5.</FONT></TD>
<TD valign=top colspan=5><FONT size="2">Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e): <FONT face="wingdings">&#111;</FONT> </FONT></TD>
</TR>

<TR><TD colspan=7><HR noshade></TD></TR>

<TR>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">6.</FONT></TD>
<TD valign=top colspan=5><FONT size="2">Citizenship or Place of Organization:<BR>Delaware</FONT></TD>
</TR>

<TR><TD colspan=7><HR noshade></TD></TR>

<TR><TD colspan="3" rowspan="8" align="center"><FONT size="2">Number of<BR>Shares<BR>Beneficially<BR>Owned by<BR> Each Reporting<BR>Person With</FONT></TD></TR>

<TR><TD valign=top><FONT size="2">7.</FONT></TD>
<TD valign=top colspan=3><FONT size="2">Sole Voting Power:<BR>1,000,000</FONT></TD></TR>

<TR><TD colspan=4><hr noshade></TD></TR>

<TR><TD valign=top><FONT size="2">8.</FONT></TD><TD valign=top colspan=3> <FONT size="2">Shared Voting Power:<BR>0</FONT></TD></TR>

<TR><TD colspan=4><hr noshade></TD></TR>

<TR><TD valign=top><FONT size="2">9.</FONT></TD><TD valign=top colspan=3> <FONT size="2">Sole Dispositive Power:<BR>1,000,000</FONT></TD></TR>

<TR><TD colspan=4><hr noshade></TD></TR>

<TR><TD valign=top><FONT size="2">10.</FONT></TD><TD valign=top colspan=3><FONT size="2">Shared Dispositive Power:<BR>0</FONT></TD></TR>

<TR><TD colspan=7><hr noshade></TD></TR>

<TR><TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">11.</FONT></TD><TD valign=top colspan=5><FONT size="2">Aggregate Amount Beneficially Owned by Each Reporting Person: <BR>1,000,000</FONT></TD>
</TR>

<TR><TD colspan=7><hr noshade></TD></TR>

<TR><TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">12.</FONT></TD><TD valign=top colspan=5><FONT size="2">Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions):<BR> <FONT face="wingdings">&#120;</FONT> </FONT></TD>
</TR>

<TR><TD colspan=7><hr noshade></TD></TR>

<TR><TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">13.</FONT></TD><TD valign=top colspan=5><FONT size="2">Percent of Class Represented by Amount in Row (11):<BR>9.48%</FONT></TD></TR>

<TR><TD colspan=7><hr noshade></TD></TR>

<TR><TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">14.</FONT></TD><TD valign=top colspan=5><FONT size="2">Type of Reporting Person (See Instructions):<BR>PN</FONT></TD></TR>

<TR><TD colspan=7><hr noshade></TD></TR>
</TABLE>

<P align="center"><FONT size="2">Page 2 of 7</FONT>






<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>



<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="4">
<TR>
<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
<TD width="28%"><FONT size="2">&nbsp;</FONT></TD>
<TD width="14%"><FONT size="2">&nbsp;</FONT></TD>
<TD width="45%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
<TD colspan="7"><FONT size="2">CUSIP No. 522126101</FONT> </TD>
</TR>

<TR><TD colspan=7><HR noshade></TD></TR>

<TR>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">1.</FONT></TD>
<TD valign=top colspan=3><FONT size="2">Name of Reporting Person:<BR>Michael A. Nery</FONT></TD>
<TD valign=top colspan=2><FONT size="2">I.R.S. Identification Nos. of above persons (entities only):<BR>
</FONT></TD>
</TR>

<TR><TD colspan=7><HR noshade></TD></TR>

<TR>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">2.</FONT></TD>
<TD valign=top colspan=5><FONT size="2">Check the Appropriate Box if a Member of a Group (See Instructions):</FONT></TD>
</TR>

<TR>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">(a)</FONT></TD>
<TD valign=top><FONT face="wingdings">&#111;</FONT></TD>
<TD valign=top colspan=3><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">(b)</FONT></TD>
<TD valign=top><FONT face="wingdings">&#120;</FONT></TD>
<TD valign=top colspan=3><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD colspan=7><HR noshade></TD></TR>

<TR>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">3.</FONT></TD>
<TD valign=top colspan=5><FONT size="2">SEC Use Only:</FONT></TD>
</TR>

<TR><TD colspan=7><HR noshade></TD></TR>

<TR>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">4.</FONT></TD>
<TD valign=top colspan=5><FONT size="2">Source of Funds (See Instructions):<BR>AF</FONT></TD>
</TR>

<TR><TD colspan=7><HR noshade></TD></TR>


<TR>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">5.</FONT></TD>
<TD valign=top colspan=5><FONT size="2">Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e): <FONT face="wingdings">&#111;</FONT> </FONT></TD>
</TR>

<TR><TD colspan=7><HR noshade></TD></TR>

<TR>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">6.</FONT></TD>
<TD valign=top colspan=5><FONT size="2">Citizenship or Place of Organization:<BR>USA</FONT></TD>
</TR>

<TR><TD colspan=7><HR noshade></TD></TR>

<TR><TD colspan="3" rowspan="8" align="center"><FONT size="2">Number of<BR>Shares<BR>Beneficially<BR>Owned by<BR> Each Reporting<BR>Person With</FONT></TD></TR>

<TR><TD valign=top><FONT size="2">7.</FONT></TD>
<TD valign=top colspan=3><FONT size="2">Sole Voting Power:<BR>1,000,000</FONT></TD></TR>

<TR><TD colspan=4><hr noshade></TD></TR>

<TR><TD valign=top><FONT size="2">8.</FONT></TD><TD valign=top colspan=3> <FONT size="2">Shared Voting Power:<BR>0</FONT></TD></TR>

<TR><TD colspan=4><hr noshade></TD></TR>

<TR><TD valign=top><FONT size="2">9.</FONT></TD><TD valign=top colspan=3> <FONT size="2">Sole Dispositive Power:<BR>1,000,000</FONT></TD></TR>

<TR><TD colspan=4><hr noshade></TD></TR>

<TR><TD valign=top><FONT size="2">10.</FONT></TD><TD valign=top colspan=3><FONT size="2">Shared Dispositive Power:<BR>0</FONT></TD></TR>

<TR><TD colspan=7><hr noshade></TD></TR>

<TR><TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">11.</FONT></TD><TD valign=top colspan=5><FONT size="2">Aggregate Amount Beneficially Owned by Each Reporting Person: <BR>1,000,000</FONT></TD>
</TR>

<TR><TD colspan=7><hr noshade></TD></TR>

<TR><TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">12.</FONT></TD><TD valign=top colspan=5><FONT size="2">Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions):<BR> <FONT face="wingdings">&#120;</FONT> </FONT></TD>
</TR>

<TR><TD colspan=7><hr noshade></TD></TR>

<TR><TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">13.</FONT></TD><TD valign=top colspan=5><FONT size="2">Percent of Class Represented by Amount in Row (11):<BR>9.48%</FONT></TD></TR>

<TR><TD colspan=7><hr noshade></TD></TR>

<TR><TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">14.</FONT></TD><TD valign=top colspan=5><FONT size="2">Type of Reporting Person (See Instructions):<BR>IN</FONT></TD></TR>

<TR><TD colspan=7><hr noshade></TD></TR>
</TABLE>

<P align="center"><FONT size="2">Page 3 of 7</FONT>








<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>










<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><B>SCHEDULE 13D</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Schedule&nbsp;13D (the &#147;Schedule&nbsp;13D&#148;) is being filed on behalf of Nery
Capital Partners, L.P., a Delaware limited partnership (&#147;Nery Capital&#148;), and
Mr.&nbsp;Michael A. Nery, the principal of Nery Capital, relating to common shares
of beneficial interest of The Leather Factory, Inc., a Delaware corporation
(the &#147;Issuer&#148;). Mr.&nbsp;Nery and Nery Capital are collectively referred to as the
&#147;Reporting Persons.&#148; Because of activities that have been undertaken or may be
undertaken by the Reporting Persons, the Reporting Persons may be deemed to
constitute a group within the meaning of Section&nbsp;13(d)(3) of the Securities
Exchange Act of 1934 (the &#147;Exchange Act&#148;). Notwithstanding the foregoing, the
filing of this Schedule&nbsp;13D should not be deemed an admission that the
Reporting Persons comprise a group within the meaning of Section&nbsp;13(d)(3) of
the Exchange Act. Information with respect to each person filing this statement
is given solely by such person and no person has responsibility for the
accuracy or completeness of the information supplied by another person.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Schedule&nbsp;13D relates to common shares of beneficial interest of the
Issuer, par value $ .0024 per share (&#147;Common Shares&#148;), owned by Nery Capital.


<P align="left" style="font-size: 10pt"><B>Item&nbsp;1. Security and Issuer</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities: Common Shares, par value $.0024 per share

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="96%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="71%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Issuer:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Leather Factory, Inc.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3847 East Loop 820 South</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ft. Worth, Texas 76119</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<!-- link2 "Item&nbsp;2. Identity and Background" -->

<P align="left" style="font-size: 10pt"><B>Item&nbsp;2. Identity and Background</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;This Schedule&nbsp;13D is filed by: Nery Capital Partners, L.P., a Delaware
limited partnership. Mr.&nbsp;Michael A. Nery is the manager of (i)&nbsp;Nery Asset
Management, LLC, the investment adviser to Nery Capital, and (ii)&nbsp;Nery Capital
Management, L.L.C., the general partner of the Nery Capital.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The business address of each of the Reporting Persons 22 South Pack
Square, Suite&nbsp;302, Asheville, North Carolina 28801.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Nery Capital provides investment management services to private
individuals and institutions. The principal occupation of Mr.&nbsp;Michael A. Nery
is investment management.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;None of the Reporting Persons, has, during the last five years, been
convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;None of the Reporting Persons, has, during the last five years, been a
party to a civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was or is subject to a
judgment, decree or final order enjoining future


<P align="center" style="font-size: 10pt">Page 4 of 7



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">violations of, or prohibiting
or mandating activities subject to, federal or state securities laws or finding
any violation with respect to such laws.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Nery Capital is a Delaware limited partnership, and Mr.&nbsp;Nery is a
United States citizen.

<!-- link2 "Item&nbsp;3. Source and Amount of Funds" -->

<P align="left" style="font-size: 10pt"><B>Item&nbsp;3. Source and Amount of Funds</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of September&nbsp;7, 2004, Nery Capital had invested <B>$</B>3,500,000. The above
amount includes any commissions incurred in making the investments. The source
of these funds was the working capital of Nery Capital.

<!-- link2 "Item&nbsp;4. Purpose of the Transaction" -->

<P align="left" style="font-size: 10pt"><B>Item&nbsp;4. Purpose of the Transaction</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Reporting Persons acquired the Common Shares owned by them for
portfolio investment purposes. The Reporting Person, Michael Nery, is
currently a director of the Issuer.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the Reporting Persons reserve the right to acquire, or dispose of,
additional securities of the Issuer, in the ordinary course of business, to the
extent deemed advisable in light of Nery Capital&#146;s general investment and
trading policies, market conditions, the availability of Common Shares or other
factors. Except as disclosed above, none of the Reporting Persons have any
plans or proposals of the type described in (b)-(j) of Item&nbsp;4.

<!-- link2 "Item&nbsp;5. Interest in Securities of the Issuer" -->

<P align="left" style="font-size: 10pt"><B>Item&nbsp;5. Interest in Securities of the Issuer</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;As of September&nbsp;7, 2004, the Reporting Persons beneficially owned in
the aggregate 1,000,000 Common Shares of the Issuer, which represents 9.48% of
the Issuer&#146;s outstanding Common Shares, which such percentage was calculated by
dividing (i)&nbsp;the 1,000,000 Common Shares beneficially owned by the Reporting
Persons as of such date, by (ii)&nbsp;10,553,243 Common Shares outstanding as of
June&nbsp;30, 2004, based upon the Issuer&#146;s Quarterly Report on Form 10-Q filed with
the Securities and Exchange Commission on August&nbsp;9, 2004.

<!-- link2 "Item&nbsp;6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer" -->

<P align="left" style="font-size: 10pt"><B>Item&nbsp;6. Contracts, Arrangements, Understandings or Relationships with
Respect to Securities of the Issuer</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None.

<!-- link2 "Item&nbsp;7. Material to be Filed as Exhibits" -->

<P align="left" style="font-size: 10pt"><B>Item&nbsp;7. Material to be Filed as Exhibits</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="82%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Joint Filing Agreement dated September&nbsp;7, 2004, between Nery
Capital and Mr.&nbsp;Nery.</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<!-- link2 "Signature" -->

<P align="left" style="font-size: 10pt"><B>Signature</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After reasonable inquiry and to the best of my knowledge and belief, the
undersigned certifies that the information set forth in this statement is true,
complete and correct.


<P align="center" style="font-size: 10pt">Page 5 of 7



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">Dated: September&nbsp;7, 2004


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top">&nbsp;</TD>
    <TD colspan="3">NERY CAPITAL PARTNERS, L.P.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000">/S/ MICHAEL A. NERY
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">Michael A. Nery, Manager&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000">/S/ MICHAEL A. NERY
</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3">
Michael A. Nery<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt">Page 6 of 7




<P align="center" style="font-size: 10pt">&nbsp;
</DIV>


</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-1
<SEQUENCE>2
<FILENAME>d18272exv1.htm
<DESCRIPTION>JOINT FILING AGREEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>exv1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="right" style="font-size: 10pt"><B>EXHIBIT 1</B>



<P align="center" style="font-size: 10pt"><B>JOINT FILING AGREEMENT</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with Rule&nbsp;13d-1(k) under the Securities Exchange Act of
1934, as amended, the undersigned agree to the joint filing on behalf of each
of them of a Statement on Schedule&nbsp;13D (including any and all amendments
thereto) with respect to the common shares of beneficial interest, par value
$.0024 of The Leather Factory, Inc. and further agree that this Joint Filing
Agreement shall be included as an Exhibit to such joint filings.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned further agree that each party hereto is responsible for
the timely filing of such Statement on Schedule&nbsp;13D and any amendments thereto,
and for the accuracy and completeness of the information concerning such party
contained therein; provided, however, that no party is responsible for the
accuracy or completeness of the information concerning any other party, unless
such party knows or has reason to believe that such information is inaccurate.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Joint Filing Agreement may be signed in counterparts with the same
effect as if the signature on each counterpart were upon the same instrument.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the undersigned have executed this Agreement as of
September&nbsp;7, 2004.

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top">&nbsp;</TD>
    <TD colspan="3">NERY CAPITAL PARTNERS, L.P.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000">/S/ MICHAEL A. NERY
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">Michael A. Nery, Manager&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000">/S/ MICHAEL A. NERY
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD valign="top">&nbsp;</TD>
    <TD colspan="3">Michael A. Nery<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">Page&nbsp;7&nbsp;of&nbsp;7
</DIV>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
