Hancock Fabrics, Inc. is engaged in the retail and wholesale fabric business, selling fabrics and related accessories to the sewing and home decorating market and at wholesale to independent retailers. As of February 3, 2002, the Company operated 439 fabric stores in 42 states. As a wholesaler of fabrics and related items, the Company sells to independent retail fabric stores. Its stores offer a wide selection of apparel fabrics, home decorating products (which include drapery and upholstery fabrics and home accent pieces), notions (which include sewing aids and accessories such as zippers, buttons, threads and ornamentation), sewing machines, patterns, quilting materials and supplies and related items. Each of its retail stores maintains an inventory that includes cotton, woolen and synthetic staple fabrics, such as broadcloth, poplin, gabardine, unbleached muslin and corduroy, as well as seasonal and current fashion fabrics.