The additional 104 stores represent annual sales of about $75 million. The company will conduct liquidation sales at the units over the next three to four months.

Hancock Fabrics has also received a default notice from its bank group due to the delay of its quarterly filings last year. The company is now exploring "strategic alternatives" due to the move.

Hancock's same-store sales fell 4% year over year through January, its latest-reported financial term. Fourth-quarter sales fell to $111.7 million, from $118.3 million during the same year-ago period, while same-store sales fell 4.9% over that time.

Additionally, Bruce Smith, the company's CFO and EVP, announced his departure from the company earlier this month. In the meantime, Corporate Revitalization Partners is Hancock's financial adviser.

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