Hancock Fabrics going-out-of-business sales approved

By Caroline Salls

Pittsburgh, Dec. 20 - Hancock Fabrics, Inc. obtained court approval to hold going-out-of-business sales at seven of its retail stores, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the motion, the going-out-of-business sales will be held if the company is unable to negotiate necessary changes to the leases associated with the closing stores.

Since the company must decide whether to accept or reject the leases by February, Hancock said the store closing sales should be held in the later part of December if the lease modification negotiations fail.

Following the going-out-of-business sales, Hancock said it would either reject or attempt to assume or assign the leases.

Liquidation consultant Great American Group, LLC will assist with the going-out-of-business sales.

Hancock Fabrics, a Baldwyn, Miss., specialty retailer of fabric and related home sewing and decorating accessories, filed for bankruptcy on March 21, 2007. Its Chapter 11 case number is 07-10353.

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