Home / Knowledge / News / Textiles / Hancock Fabrics cuts jobs
Hancock Fabrics cuts jobs
28
Jan '09
Hancock Fabrics Inc announced a series of actions taken to accelerate the Company's improved performance in spite of the deteriorating economic conditions retailers currently face.

Jane Aggers, President and Chief Executive Officer noted, "Although we are encouraged by our 1.5% increase in same store sales over the holiday period, we have to ensure our expense structure allows us to be successful despite the broad economic issues the retail industry is facing. As a result, we feel it is prudent to take these steps to ensure we continue our progress of returning Hancock to profitability. The cost and capital spending reductions have been structured to have minimal impact on our customers. Each of these actions will have an immediate impact on 2009 and should better position us for the future."

The significant components of the cost reductions consist of a reduction-in-force and changes in employee benefit plans. Specifically, these actions include:

-- Reduction of approximately 30 corporate and store support positions,
equating to approximately 9% of the corporate (non-store personnel)
workforce.
-- Elimination of Company obligations under certain employee benefit
programs.


All affected employees have been notified and most position eliminations will be effective by January 30, 2009. Eligible employees have been offered appropriate severance packages. Changes in the benefit plans referred to above have or will occur after the required notice period to participants.

As a result of the reduction-in-force, the Company expects to incur charges of approximately $0.3 million in the fourth quarter of fiscal 2008 for employee termination benefits. The 2009 total cost reduction is expected to save approximately $3.2 million.

In addition to cost reductions, the Company has lowered its planned capital expenditures for fiscal 2009 by approximately $4 million or 45% from the anticipated 2008 levels. The 2009 capital expenditures will relate primarily to the relocation of certain stores and system improvements to enhance inventory management.

Aggers concluded with, "We are fortunate to have flexibility under our existing debt facilities with no maturities until 2013. In addition, our primary facility has no financial covenants other than minimum availability. Our current availability under that facility is $34 million, which is $18 million more than when we closed the facility in August and we anticipate availability increasing throughout 2009."

Hancock Fabrics, Inc. is committed to being the authority in fabric and sewing, serving creative enthusiasts with a complete selection of fashion and home decorating textiles, sewing accessories, needlecraft supplies and sewing machines.

Hancock Fabrics Inc


Must ReadView All

Textiles | On 22nd Jul 2017

Govt constitutes GST Feedback and Action Room

The Government of India has constituted a Feedback and Action Room...

Textiles | On 22nd Jul 2017

India’s cotton textile exports fell in FY17: Tamta

The overall export of cotton textiles from India declined in 2016-17...

Textiles | On 22nd Jul 2017

Stella McCartney, Bolt Threads partner for eco fashion

Fashion designer Stella McCartney has partnered with Bolt Threads for ...

Interviews View All

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

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

July 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


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



X