Hancock Fabrics and its subsidiaries have filed for voluntary relief. Hancock said the action is meant to reorganize the company, enhance its operating performance and lower its reduced debt.
Hancock has also negotiated a financing arrangement worth $105 million while an additional loan of up to $17.5 million is being discussed with another lender. The company said it was also closing 104 more stores apart from the 30 closings it announced early February. A national real estate firm has been chosen to help Hancock in disposing leases for the closing stores. The additional closings represent an estimated $75 million in yearly sales.
With Hancock’s present situation, though, employees, customers, vendors and other stakeholders won’t be disregarded. In fact, Hancock Fabrics has filed several “First Day Motions” in bankruptcy court to continue paying its employees and meet the needs of customers pertaining to gift cards, merchandise returns, classes and other services. Hancock president Jane Aggers assures they will complete the reorganization the soonest time possible.
