Hancock Fabrics Files for Bankruptcy

Hancock Fabrics Inc. (Baldwyn, Miss.) has filed for chapter 11 bankruptcy protection and plans to shutter 70 stores immediately, which is about 28 percent of its total store count. The company has debts of $182 million and listed $151.4 million worth of assets.

According to the Chicago Tribune, it plans to use the bankruptcy to explore the possibility of a sale and to ramp up the company’s online presence, in addition to closing stores. It plans to continue operating during the reorganization and liquidate the closing stores.

The company previously filed for bankruptcy in 2007.