Hancock Fabrics granted exclusivity extension

By Caroline Salls

Pittsburgh, Dec. 21 - Hancock Fabrics, Inc. obtained an extension to its exclusive periods to file a plan of reorganization and to solicit votes on the plan, according to an 8-K filed Friday with the Securities and Exchange Commission.

The company's exclusive plan-filing period was extended to May 30, 2008 from Nov. 30 and the solicitation period to June 30, 2008 from Jan. 31.

However, after March 31, the company's official committee of unsecured creditors will also have the right to file a plan of reorganization.

The committee would gain the right to solicit votes on its plan after May 30.

According to the motion, Hancock needs to focus on its operating performance and sticking to its business plan during its peak sales period.

In addition, the company said it needs more time to complete the remodeling of five stores, perform a store performance analysis based on the 2007 holiday season results, finish its IT rollout, settle sale procedures litigation, resolve state tax claims, obtain exit financing, continue the claims resolution process and complete audit support to allow the filing of financial reports with the SEC.

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

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