BALDWYN — Fabric and sewing supply retailer Hancock Fabrics is filing for Chapter 11 bankruptcy protection for the second time in nine years.
The company, based in Baldwyn, Miss., made the filing Tuesday in U.S. Bankruptcy Court in Delaware.
In its filing, Hancock estimates both its assets and its debts at between $100 million and $500 million. In its bankruptcy petition, Hancock cites ongoing losses, a lower borrowing limit on its credit line, and high debt payments as reasons for restructuring.
Hancock says it has negotiated up to $100 million in bankruptcy financing from lenders. Hancock has also hired a company to liquidate some stores, and says it could sell all or part of the company. In the meantime, it promises business as usual at more than 250 stores in 37 states.
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