Hancock Fabrics filed with the U.S. Bankruptcy Court a motion to extend the exclusive period during which the Company can file a Chapter 11 plan and solicit acceptances thereof through and including December 2, 2016 and February 3, 2017, respectively.
The motion explains, “The Debtors have worked toward winding down their business and affairs by (i) selling substantially all of their inventory and related assets through the Auction, (ii) concluding the Store Closing Sales, (iii) closing the Sale of their IP Assets, (iv) selling the Property, (v) selling their interest in that certain class action interchange fee litigation, (vi) negotiating the assumption and assignment of numerous unexpired leases, and (vii) rejecting other burdensome executory contracts and unexpired leases.”
The motion continues, “As a result, during the six-month period since these cases were filed, the Debtors have sold all or substantially all of their assets, closed their distribution center, significantly reduced corporate headcount and are working diligently towards finalizing a plan of liquidation to distribute the value obtained from these efforts to their various creditor constituencies and concluding these chapter 11 cases. The recent accomplishment of these tasks and the near-future closing of certain sales of particular assets of the Debtors will permit the Debtors to prepare and solicit support for an appropriate chapter 11 plan within the extended Exclusive Periods requested herein.”
The Court scheduled an August 29, 2016 hearing on the motion. Read more retail bankruptcy news.