Hancock Fabrics files for bankruptcy, considers sale of company

Hancock Fabrics has filed for bankruptcy again and said it might put the entire company of 250 retail sewing and crafting stores up for sale.



The Mississippi-based retailer in fabric, sewing and accessories has filed voluntary petitions for reorganization under chapter 11 of the U.S. Bankruptcy Code. The company said it is considering all possible options for maximizing stakeholder value, including the sale of the business as a going concern in either a single transaction or a series of transactions. It is also reviewing investment options with existing stakeholders and third parties.



The company previously filed for Chapter 11 bankruptcy in 2007 and emerged a year later.



"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. We will continue to offer the same unparalleled service for which the Company has been known since its founding in 1957," said Steve Morgan, president and CEO.



Hancock says it has taken this necessary step to reorganize its financial and operational structure to position itself for optimal growth. As part of the restructuring process, the company says it intends to implement a comprehensive program to enhance its customer experience by increasing the availability of associates, in-store classes and training. The company also intends to feature an enhanced e-commerce presence. The company will continue to offer an interactive online community, a wide variety of unique merchandise and quality customer service.



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 currently operates more than 250 retail stores in 37 states and an Internet store at the website Hancockfabrics.com.