|Hancock Fabrics will liquidate and close it's Newport location. FTM file.|
The nationwide fabric store owes nearly $84 million to three secured creditors who have first dibs on any proceeds coming from the liquidation of its stores.
The "Going Out of Business" sale is advertising 20-50% off every item.
Locally, there is another Hancock's Fabric store in Cherry Grove near Mt. Carmel.
Hancock's top three secured creditors have provided financing for the company. Wells Fargo is owed the largest chunk, more than $57 million, followed by GACP Finance at $18.3 million and Deutsche Bank is owed $8.4 million.
The liquidation is expected to be completed by July 31.
Read more on the liquidation by The Consumerist.
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If that name sounds familiar, you’ve probably come across the company while bargain-hunting in the past. Great American Group is part of what Consumerist once called a “notorious cabal” of liquidators known for garish signs, terrible deals, and taking the “all sales final” policy very seriously.
Liquidation sales start today, and include the chain’s website. In traditional liquidation sale style, the deals aren’t very good yet.
While the chain’s closing is welcome news to some of the nation’s 8-year-olds, it leaves fans of sewing clothing with fewer in-person shopping choices. While home sewing is making a comeback, things aren’t as they were when the chain opened and sewing one’s own clothes was a common skill and the more economical choice.
Hancock Fabrics last filed for bankruptcy in 2007, but since its re-organization has only posted a profit once, in 2009.