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Hancock Fabrics withdraws plans to go private

(WTVA)
(WTVA)
Reported by: Mel Carlock
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Updated: 8/05 12:23 pm
BALDWYN, Miss. (WTVA) -- A plan by the board of directors of Hancock Fabrics to repurchase shares of outstanding stock and take the company private is on hold for now.

The board announced the 1000-to-one reverse stock split earlier this year.

The plan called for them to offer $1.20 per share to shareholders with less than 1,000 shares.

Hancock officials expected the move to cost around $936,000 originally but say the company $640,000 per year after the company went private.

On Monday, company officials say some stock holders split their shares or bought them through multiple accounts in an attempt to get a pay out.

They say the costs now outweighs any benefits it would generate for the remaining stockholders.

Hancock officials say they could revisit the plan or a similar measure in the future.
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