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Hancock to Close 30 Stores
Posted by: Editors | February 8, 2007
Hancock Fabrics has announced it will close 30 stores, representing approximately $18 million in annualized sales. Approximately half the 30 stores have leases that expire in 2007 or 2008, while others have lease commitments expiring between 2009 and 2015. Remaining lease commitments for all 30 stores totals approximately $8 million. The company has hired 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.
Hancock also reported today that sales for the five-week period ended February 3 totaled $35.1 million compared to $31.9 million in the four-week period last year that ended January 28, 2006. The increase is attributed to the extra week, partially offset by having 44 fewer stores and a decline in same-store sales. The same-store sales decline of 4 percent is based on sales during the four weeks of January that were comparable between both years.
Fourth-quarter same-store sales declined 4.9 percent, and total sales for the quarter were $111.7 million compared to $118.3 million a year ago. For the year, same-store sales dropped 1.9 percent, including a 2.7 percent benefit from 42 stores that were liquidated earlier in the year. Total sales for the year were $388.3 million, down from $403.2 million the previous year.
Beginning the first quarter of 2007, the company will report sales on a quarterly basis and will discontinue reporting sales monthly due to the fluctuations that occur between months as a result of changes in the timing of promotional activity, holidays, and the retail calendar.
The company currently operates 403 stores in 40 states.
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