Baldwyn, Miss. — Hancock Fabrics, Inc., a leading retailer in fabric, sewing and accessories, and its wholly owned subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Approximately 70 stores will close as part of the restructuring.
The company intends to use the filing to reorganize its capital structure and gain access to liquidity, reduce costs and liabilities, optimize its store operations and locations to meet customer demands and create the most value for stakeholders. The company is considering all possible options, including the sale of the business.
“We believe the restructuring is a positive step for the future of the company and we are committed to providing our customers quality fabrics and crafting essentials, both online and in stores. We value our relationships with our vendors and appreciate their support throughout this process,” says Steve Morgan, president and CEO.
During the restructuring process, the company plans to continue to operate its business as usual and to fulfill customer orders and pay vendors. The company has filed with the Bankruptcy Court, and anticipates receiving approval of, customary motions to allow the company to make certain necessary payments to employees and vendors that will ensure continued operations through the restructuring and beyond.
The company currently operates more than 250 retail stores in 37 states. For more information, visit www.hancockfabrics.com.
SOURCE: Hancock Fabrics, Inc.