Hancock Fabrics gets reorganization financing
Home & Textiles Today Staff -- Home Textiles Today, 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.
“GE’s retail and restructuring expertise was critical in securing financing because they truly understood our business and the challenges we were working to overcome,” said Jane Aggers, Hancock president and ceo. “We also valued their ability to make significant financial commitment in an uncertain market environment.”
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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