House Of Fabrics Inc

House of Fabrics Inc., a Sherman Oaks fabric retailer that filed for Chapter 11 bankruptcy protection in November, has filed a reorganization plan with the federal Bankruptcy Court that would allow the company to continue operating and purchasing inventory. However, the company said the plan is likely to undergo some revisions because of continuing negotiations with its creditors and stockholders.

House of Fabrics: The Sherman Oaks-based company, in bankruptcy proceedings since last November, is to release its second-quarter earnings on Thursday or Frida. The 364-store chain filed a reorganization plan on Aug. 31 that called for emerging from bankruptcy by the end of January as a "strong, stable competitor." Under the terms of the plan, House of Fabrics would convert about $120 million in short-term loans from a bank creditor group led by Bank of America to a 10-year term obligation.

House of Fabrics Inc., a Sherman Oaks-based chain of fabric stores that filed for federal bankruptcy protection in November, reported deep losses and reduced revenues for the quarter and fiscal year that ended Jan. 31. The company reported a loss of $9.07 million for the fourth quarter, compared to a profit of $212,000 in the same three-month period a year earlier. Fourth-quarter sales fell to $101 million, down 32% from $148 million a year earlier.

House of Fabrics Inc., which is in Chapter 11 bankruptcy reorganization, reported a $73.2-million loss for its fiscal third quarter that ended Oct. 31. The loss came on a 36% plunge in sales for the quarter, to $90.6 million. A year before, the Sherman Oaks fabric retailer lost $25 million on $141.8 million in sales. The company blamed the sales decline mostly on store closings. Included in the loss for the recent quarter was a one-time pretax restructuring charge of $49.

House of Fabrics Inc., a Sherman Oaks-based fabric retailer that filed for Chapter 11 bankruptcy protection last Wednesday, said the bankruptcy court has approved its use of cash flow from company operations to purchase merchandise and fund ongoing operations through the end of the month. The company said the decision allows it to begin receiving shipments of standard items for its stores and to renew stock that has been in short supply in recent months.

Faced with high costs and heavy debt despite its recent belt-tightening, the nationwide House of Fabrics retail chain said Thursday it has sought protection from creditors under Chapter 11 of the Bankruptcy Code. The once-thriving retailer of fabrics and home sewing items, which was founded in Los Angeles in 1946 and grew into a network of more than 600 stores, has been hurt by stiff competition and the struggling California economy, analysts said.

These are trying times for House of Fabrics Inc. The once-thriving Sherman Oaks-based retailer of fabrics and home sewing items has been in a slump since 1992, when earnings collapsed under the weight of the national economic recession. Hoping to engineer a turnaround, House of Fabrics recently announced a tentative refinancing proposal, plans to close nearly a third of its existing stores, and an expanded emphasis on merchandising craft and home decorating items.

These are trying times for House of Fabrics Inc. The once thriving enterprise, based in Sherman Oaks, started on a downward course in 1992 when the company's earnings collapsed under the weight of the recession. Rumors of possible bankruptcy continue to surround it, leaving the financial and retailing communities wondering if the fabric retailer can turn itself around. House of Fabrics is pinning its hopes on a new retailing concept to help solve its problems.

House of Fabrics Inc., among the nation's largest fabric retailers and one that has been hurt by competition and the struggling California economy, said Tuesday that mounting losses will force it to close about 200 stores by year's end.