The Hancock Fabrics store in Hazel Dell will soon close, a victim of the bankruptcy of the store’s corporate parent. Some 70 Hancock stores nationwide will close.
The store, 628 N.E. 81st St., Suite A, started its liquidation sale Thursday and will remain open until all the merchandise and fixtures are sold, said Billie Domson, an associate at the Hazel Dell store.
Prices on most items are currently discounted about 20 percent, she said.
The store has nine employees and a loyal clientele, said Domson, 67, who had worked at the store in the past and returned to work in August.
“Everyone is heartbroken,” she said. “It’s like a death. There is no other store like Hancock.”
Earlier this week, Hancock Fabrics Inc. sought Chapter 11 protection from creditors, saying it would immediately close 70 of its more than 250 stores in 37 states.
The company, one of the nation’s largest fabric retailers, said it would restructure to become more competitive with its remaining stores and online.
In a petition filed Tuesday in Wilmington, Del., bankruptcy court, Hancock listed debt of $182 million and assets of $151.4 million, Bloomberg News reported.
Founded in 1957, Hancock had also filed for bankruptcy protection in 2007 and emerged from reorganization the following year, Bloomberg reported. The company, based Baldwyn, Miss., had 2014 sales of more than $283 million and recorded a loss of $3.2 million. Its chief rivals include Wal-Mart, Jo-Ann Fabrics and online outlets.
Domson said the Hazel Dell store was always busy, but she said the retail fabric industry has changed.
“You can buy so many things over the internet,” she said. “It’s just the times.”