Hancock reports Jan sales & announces 30 store closings
09 Feb '07
3 min read
The remaining commitments under all 30 of these leases total approximately $8 million. The Company has engaged a national firm to market the leases in an attempt to maximize recoveries and has engaged a second national firm to oversee the inventory liquidation sales in these stores during the first quarter of 2007.
As these 30 stores are closed, charges to earnings will be recorded to the extent that the continuing occupancy costs exceed amounts estimated to be recoverable through subleasing the properties or early termination of the leases. In addition, as the inventory liquidation sales take place, there will likely be losses incurred as a result of the liquidation pricing.
In connection with the store closings, the Company currently estimates that it will incur total charges of approximately $4 million to $6 million. The total future cash expenditures in connection with these activities are currently expected to be approximately $2 million to $3 million, which is net of anticipated proceeds of $5 million to $6 million from subleasing the store locations or terminating the leases early.
Hancock Fabrics Inc - America's Fabric Store - is committed to serving creative enthusiasts with a complete selection of fashion and home decorating textiles, sewing accessories, needlecraft supplies and sewing machines.
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