Hancock Fabrics gets reorganization financing
August 5, 2008,
Norwalk, Conn. — GE Commercial Finance Corporate Lending will provide $100 million to fabric retailer, converter and distributor Hancock Fabrics to complete the company’s reorganization as it emerges from Chapter 11 bankruptcy.
The Baldwyn, Miss.-based company filed for bankruptcy in March 2007 under a plan that would pare down unprofitable stores and repay unsecured creditors cash equal 104.93% of their claims. The company operates 266 retail stores in 37 states, down from 440 stores at the time of the filing. Revenues are running at about $150 million-plus compared with $276 million in 2007.
Besides its retail sales, Hancock operates a wholesale fabrics division that sells jacquards, chenilles, damasks, faux leathers, silks, acrylics, rayons and polys to upholstery manufacturers. The company took part in the Showtime fabric show in High Point in June.
(Reported by Gary Evans, senior editor of HTT sister publication Furniture Today.)
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