Wal-Mart to Stock Fabric Once Again

Home Textiles Today reports that Wal-Mart will once again be carrying fabric at many of its locations. They will be supporting the re-introduction of the fabric department with advertising and in store signage. Read the rest of the story here.

Hancock Fabrics Files Chapter 11

Hancock Fabrics, Inc., announced today it has filed a voluntary petition for Chapter 11 relief in the United States Bankruptcy Court for the District of Delaware. Its subsidiaries are also filing for the same relief. Hancock took this action so that it can use the reorganization process to improve the Company’s operating performance, reduce its secured debt over time, close underperforming locations, and exit Chapter 11.

Hancock announced that it has negotiated a consensual $105 million DIP (debtor-in-possession) financing arrangement with Wachovia Bank, N.A., in which Hancock will gain additional borrowing capacity necessary to operate successfully under Chapter 11. The Company is also in the final stages of negotiating an additional loan of up to $17.5 million with another lender.

Yesterday, the Company announced that it had completed a review of each of its store locations and had decided to close 104 stores, in addition to the 30 store closings announced in a press release dated February 8, 2007.

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Hancock Fabrics Closings 104 Stores; Receives Default Notice from Bank

Hancock Fabrics closing 104 stores, representing approximately $75 million in annualized sales. These closings are in addition to the 30 store closings disclosed in a press release dated February 8, 2007.

The Company has expanded its existing engagement of a national liquidation firm to assist it with the inventory liquidation sales in these stores over the next three to four months. In addition, it has selected a national real estate firm to assist it in the disposition of the leases for the closing stores.

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