Hancock Fabrics gets extension

Published 8:12 pm Friday, December 7, 2007

Hancock Fabrics now has until May 30, 2008, to file its plan for reorganization with the U.S. Bankruptcy Court for the District of Delaware.

The craft and fabric retailer voluntarily filed for Chapter 11 bankruptcy protection in March.

Hancock’s original deadline was July 19, 2007.

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Hancock told the Securities and Exchange Commission in July that it was approaching its “historical peak sales period” and that the company “must maintain focus on operating performance and execution of their business plan.” Hancock said it would need “substantial time and resources … to formulate … a plan of reorganization that maximizes returns to all constituents.”

In addition, Hancock said in its latest SEC filing that it recently opened a new store prototype in Huntsville, Ala., that features a “completely redesigned layout and significantly enhanced customer service experience.”

Hancock also has developed a plan to build new store fixtures for its remodeled stores.

By doing it in-house, Hancock said it will save more than 50 percent compared with an outside manufacturer. The retailer also redesigned and shortened the store opening process. No additional details were provided.

In the coming months, Hancock said it will complete up to five more store remodels, continue the “ongoing effort to attract and obtain appropriate exit financing” and conduct store performance analyses on the new initiatives and the 2007 holiday season.

On the Net:

Hancock Fabrics, http://www.hancockfabrics.com