According to the U.S. Bankruptcy Court docket, the Court approved, on a final basis, Hancock Fabrics’ motion for an order (i) authorizing (i) store closing sales free and clear of all liens, claims, encumbrances and other interests and (ii) granting related relief.
As previously reported, “The Debtors intends to close a limited number of uneconomic and underperforming retail stores and to pursue a sale of the balance of their business through an auction process – ideally on a going-concern basis. In furtherance of this strategy, the Debtor’s management, working closely with the Debtor’s proposed investment banker, Lincoln International…undertook a comprehensive review of the performance of each store and market in which the Debtors operate and identified a total of 70 stores…as underperforming stores that should be closed immediately and at the outset of these chapter 11 cases in connection with the overall sale strategy and to ease certain of the liquidity restraints that the Debtors currently face by means of a store closing or similar themed sales (the ‘Store closing sales’).”
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