Hancock Fabrics files for bankruptcy protection
February 3, 2016 12:23 PM
A multichannel fabric and sewing accessories retailer has filed for Chapter 11 bankruptcy protection.
Hancock Fabrics Inc., No. 896 in the Internet Retailer 2015 Second 500 Guide and sells online through HancockFabrics.com, has filed in the U.S. Bankruptcy Court in the District of Delaware. Hancock says it is looking to strengthen its position online to become more competitive.
"We believe the restructuring is a positive step for the future of the company and we are committed to providing our customers quality fabrics and crafting essentials, both online and in stores,” CEO Steve Morgan said in a statement. Hancock operates 250 stores.
Online was a small bright spot for Hancock Fabrics through the first six months of 2015. In its most recent earnings filing, Hancock reported online sales of $2.3 million, up 27.8% from $1.8 million during the same time last year. Total sales declined slightly through the first half of the year to $120.4 million, down 1.6% from $122.3 million last year. E-commerce accounts for 1.9% of sales.
Top500Guide.com shows that Hancock’s online sales have grown slowly over the past five years, at an Internet Retailer-estimated $6.2 million in 2014 compared with $5.2 million in 2010, which is an average annual growth rate of 4.75%.