Hancock Fabrics preparing to emerge from bankruptcy

TUPELO, Miss. - Hancock Fabrics - which has a store in Gainesville - has filed a reorganization plan with the Securities and Exchange Commission and expects to emerge from bankruptcy in August.

The 50-page filing says the Baldwyn-based craft and fabric company will remain in business after reorganization.

Hancock filed for bankruptcy in 2007 after defaulting on its credit facility and falling behind on financial reports required by the SEC.

The company reported $276 million in sales last year. There are 273 Hancock stores open in 37 states, down from 403 in 40 states before bankruptcy.
The plan must be approved by the U.S. Bankruptcy Court of the District of Delaware.