Sewing and crafts chain store Hancock Fabrics is closing its doors and liquidating after nearly sixty years in business.
Hancock Fabrics filed for Chapter 11 bankruptcy reorganization on February 2nd, its second bankruptcy filing in less than a decade. The initial bankruptcy plan called for closing 70 of the chain’s 260 stores. But reorganization plans failed, as did attempts to find a buyer for the company as an operating concern. This resulted in the company’s assets being sold to a liquidator at an auction on Tuesday. The sale to the liquidator was approved by the bankruptcy court on Thursday, effectively ending the existence of Hancock Fabrics.
Store closing sales began in all of Hancock’s remaining stores yesterday under the direction of the liquidator, Great American Group. While the stores may appear the same to shoppers visiting them, with the same staff and signage, the store operations are now owned and run by Great American using the Hancock name under license from the stores’ former owner and the store leases under court order. According to court documents, the sales must terminate and Great American must vacate the Hancock store locations by July 31st.
The same documents stipulate that for the first 21 days of the going out of business sale that store locations must accept returns of purchases (with receipt) that were made prior to the start of the going out of business sale. All sales are final during the going out of business sale, and no previously distributed sale ads or coupons will be honored. Currently, the going out of business sale is offering a 30% off storewide discount.
The demise of Hancock Fabrics will leave Joann Fabric & Crafts virtually unchallenged as the nation’s major fabric chain retailer, excepting perhaps the fabric department at Walmart. Local retailers and online options will be the only alternative to Joann’s for sewists looking for wider options.