UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549



                                  SCHEDULE 13G


                    Under the Securities Exchange Act of 1934
                               (Amendment No. 8) 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.   NAME OF REPORTING PERSONS
     I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)


The Leather Factory, Inc. Employee's 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      895,928
               _________________________________________________________________
BENEFICIALLY   6.   SHARED VOTING POWER

  OWNED BY     None
               _________________________________________________________________
    EACH       7.   SOLE DISPOSITIVE POWER

  REPORTING    895,928
               _________________________________________________________________
   PERSON      8.   SHARED DISPOSITIVE POWER

    WITH      None
________________________________________________________________________________
9.   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON


895,928
________________________________________________________________________________
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


8.96
________________________________________________________________________________
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:

               895,928 shares of Common Stock




          (b)  Percent of Class:

               8.96

          (c)  Number of Shares as to which such person has:

               (i)  Sole power to vote or to direct the vote:
                    895,928

               (ii) Shared power to vote or to direct the vote:
                    -0-

               (iii) Sole power to dispose or to direct the disposition of:
                    895,928

               (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.



                                    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 1, 2002
                                      The Leather Factory, Inc. Employees' Stock
                                      Ownership Plan and Trust

                                      By: Arlington National Bank


                                      /s/ Robert D. Roten
                                      ------------------------------------------

                                      Robert D. Roten, Executive Vice President