Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Consumer Durables & Apparel / Post-Bankruptcy Stocks / Retailing

Hancock Fabrics Chapter 11 Petition Filed

Hancock Fabrics and its wholly-owned subsidiaries filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 16-10296. The Company, which is a leading retailer in fabric, sewing and accessories, is represented by Mark D. Collins of Richards, Layton & Finger. According to a corporate release, "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 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." Steve Morgan, Hancock Fabrics' president and C.E.O., comments, "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." The Company emerged from a previous Chapter 11 filing in August 2008.

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