Hancock Fabrics Inc., one of the largest fabric sellers in the United States, sought protection from creditors for the second time in less than a decade, saying it will use the bankruptcy to explore a sale, close stores, and ramp up its online presence.
The retailer, which has more than 250 locations in 37 states, said it seeks to close 70 stores immediately. It has an agreement with a liquidator, Great American Group, to expedite those closings, according to court papers filed Tuesday. Great American will also serve as a backup bidder for its assets while Hancock continues to seek higher and better offers, and potentially sell itself whole as an ongoing business.
"We value our relationships with our vendors and appreciate their support throughout this process," Chief Executive Officer Steve Morgan said in a statement Tuesday. He said the company, founded in 1957, will continue operating during the reorganization.