From a filing with the U.S. Securities and Exchange Commission:
Item 5.02. Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers
Carl E. Berg, current Chairman of Hancock Fabrics, Inc. (the “Company”) Board of Directors, has notified the Company of his intent to resign from the Board and all associated committees, including the Management Compensation and Review Committee and the Corporate Governance and Nominating Committee, effective August 4, 2009. Mr. Berg is resigning his position in order to devote additional time to his numerous other business ventures. Mr. Berg has no disagreements with the Company on any matter.
The remaining Directors have elected Neil Subin to serve on the Board effective August 4, 2009, until the next annual shareholder meeting. Mr. Subin will participate on the Audit Committee and Corporate Governance and Nominating Committee of the Board. Mr. Subin served on the Equity Committee during the Company’s reorganization and periodically serves as an advisor to various investment funds which have or currently hold the Company’s securities.
Mr. Subin (44 years of age) currently serves as the President and Managing Director of Trendex Capital Management, an investment firm focusing primarily on distressed and troubled companies, a position he has held since 1989. Mr. Subin also participates on the boards of Movie Gallery, Inc., Primus Telecommunications Group, Inc., Fibertower Corp., The Leap Wireless International, Inc., Liquidating Trust, and Federal Mogul Corporation. Mr. Subin received a Bachelors degree from Brooklyn College.
Mr. Subin will receive compensation as an independent Director pursuant to the Company’s standard independent Director compensation plan.
In conjunction with Mr. Berg’s resignation and Mr. Subin’s election, current Director Steve Scheiwe has been appointed Chairman of the Board. Mr. Scheiwe has resigned his position on the Audit Committee due to his additional responsibilities as Chairman. Additionally, current Director Harry Schulman has been appointed to replace Mr. Berg on the Management Compensation and Review Committee.
Effective July 27, 2009, the Company’s Senior Vice President and Chief Merchant, Linda Gail Moore, has been reassigned to an interim position of Strategic Merchandising Special Projects. In this capacity, she will be reviewing and analyzing merchandising opportunities. The assessment of both internal and external candidates for her previous position will begin immediately.
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