Hancock Fabrics gets more time to prepare plan and solicit support

By Caroline Salls

Pittsburgh, May 24 – Hancock Fabrics, Inc. received an extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The company will now have until Aug. 30 to file its plan and until Oct. 31 to solicit votes, extended from July 3 and Oct. 2, respectively.

According to the order, Hancock’s official committee of unsecured creditors may stipulate that the exclusive periods be extended to Oct. 3 and Dec. 2, 2016 without further court order.

“The debtors are presently engaged in numerous activities in winding down the bankruptcy estates, including rejecting leases and executory contracts, marketing their remaining assets for sale and addressing transition issues,” the motion said.

“The debtors are pursuing each of these steps diligently in consultation with appropriate parties. The accomplishment of these tasks in the near future will permit the debtors to prepare and solicit support for an appropriate Chapter 11 plan within the extended exclusive periods requested.”

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 under Chapter 11 case number 16-10296.

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