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Hancock Fabrics Bankruptcy Plan Filed

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Hancock Fabrics filed with the U.S. Bankruptcy Court a First Amended Joint Chapter 11 Plan of Liquidation and related Disclosure Statement.

According to the Disclosure Statement, “The Plan provides that, among other things, the Debtors’ current Board of Directors will be succeeded by the Responsible Person, who will be appointed by order of the Bankruptcy Court to oversee the post-confirmation Estates and make judgments concerning winddown matters and Rights of Action. The Debtors intend to select Mr. Joseph Marchese as the Responsible Person.”

In addition, “Approximately 1,730 proofs of claim (secured and unsecured), asserting claims totaling more than $738 million against the Debtors’ bankruptcy estates (the ‘Estates’), were submitted….The Debtors’ current estimate is that total allowable General Unsecured Claims will range from $100 million to more than $109 million after reconciliation; however, it is possible that the actual allowed General Unsecured Claims may vary significantly from this range.”

The Court scheduled an April 5, 2017 hearing to consider the Disclosure Statement.

Read more retail bankruptcy news.