Hancock Fabrics seeks extension with possibility of competing plan

By Caroline Salls

Pittsburgh, May 12 – Hancock Fabrics, Inc. requested an extension of its exclusive periods for soliciting votes on a Chapter 11 plan, according to a motion filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, Hancock wants to extend its exclusive solicitation period through June 30 from May 12.

As previously reported, the company filed a plan of liquidation and related disclosure statement in December.

The company said plan solicitation is underway, but it has learned that a competing plan potentially might be filed by the official committee of unsecured creditors appointed for its Chapter 11 case.

“A competing plan process would delay confirmation of the plan, prolonging the Chapter 11 cases and materially diminishing recovery for creditors,” the company said in the motion.

A hearing is scheduled for June 12.

Based in Baldwyn, Miss., Hancock is a specialty retailer of fabric and related home sewing and decorative accessories. The company filed for bankruptcy on Feb. 2, 2016 under Chapter 11 case number 16-10296.

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