| Hancock Fabrics, Inc. is engaged in the retail and wholesale fabric business, selling fabrics and related accessories to the sewing and home decorating markets and at wholesale to independent retailers. As of February 2, 2003, the Company operated 430 stores in 42 states. As a wholesaler of fabrics and related items, it sells to independent retail fabric stores through its wholesale distribution facility in Tupelo, Mississippi. Hancock Fabrics principally serves the sewing and home decorating markets, which largely consist of women who make clothing for their families and decorations for their homes or who hire professional seamstresses to sew for them. Quilters and hobbyists also compromise a portion of the base of customers, as do consumers of bridal, party, prom and special occasion merchandise. Each of the Company's retail stores maintains an inventory that includes cotton, woolen and synthetic staple fabrics, as well as seasonal and current fashion fabrics. |
