Home / Knowledge / News / Textiles / Hancock Fabrics abandons plan to go private
Hancock Fabrics abandons plan to go private
08
Aug '14
US-based Hancock Fabrics has dropped its plans of taking the company private, on the reason that rising costs far outweigh the benefits.

Hancock Fabrics said it has not abandoned its plans to go private and will again moot the proposal in the near future only if it becomes economically prudent and is in the best interest of the company and its shareholders.

Under current circumstances, the money can be used to improve the growth of business, Hancock said.

Hancock planned to pay $1.20 per share to its fractional shareholders who owned less than 1,000 shares of company stock.

But it came to the notice of the company that shareholders were splitting their Hancock shareholdings or transacting through multiple accounts in an attempt to receive multiple fractional share payments.

Steve Morgan CEO at Hancock said, “At this time, the Board feels that the expense of the transaction, due to the abuse of the multiple account purchases, has grown to a point that it now exceeds the benefits it would generate for our remaining stockholders”.

He added, “This does not mean we would not propose another similar or alternative transaction in the future when and if it becomes economically prudent and in the best interest of the company and its stockholders.”

The craft and fabrics retailer had announced earlier in April that it no longer desires to be traded publicly.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 29th Apr 2017

Textile sector may have uniform GST rate: Irani

The textile sector could have a uniform Goods and Services Tax (GST)...

Textiles | On 30th Apr 2017

Government revamping tech mission on cotton

Indian Government is working to revamp the technology mission on...

Apparel/Garments | On 30th Apr 2017

Columbia Sportswear records Q1 net sales of $543.8 mn

Columbia Sportswear Company has announced record net sales of $543.8...

Interviews View All

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X