Hancock shareholders to meet today

By Carlie Kollath/NEMS Daily Journal

BALDWYN – Hancock Fabrics today hosts its annual shareholders meeting at its Baldwyn headquarters.
It will be the first meeting since Steve Morgan was confirmed as the company’s CEO and president.
The meeting kicks off at 10 a.m. and is open to stockholders of record as of Oct. 21.
The stockholders will vote on members of the board of directors.
The nominees, according to a proxy filing with the U.S. Securities and Exchange Commission, are Morgan, Sam P. Cortez, Steven D. Scheiwe and Neil S. Subin. The nominees are current board members.
Scheiwe has been the non-executive chairman since August 2009.
During fiscal year 2010, the directors were paid and earned stock awards totaling $106,500 (Cortez); $138,393 (Morgan); $140,500 (Scheiwe); and $94,500 (Subin).
Harry D. Schulman was paid $28,857, but he is no longer on the board. Morgan no longer receives compensation for being a board member because he is a Hancock employee, according to the SEC filing.
The stockholders also will vote whether to hire Burr Pilger Mayer as Hancock’s accounting firm for a sixth year. Hancock paid the firm $546,000 for its work in the fiscal year that ended Jan. 29 of this year.
Hancock hired Burr Pilger Mayer after it ended its longtime relationship with PricewaterhouseCooper. Hancock filed suit against PwC, essentially blaming the accounting company’s actions for ultimately causing the craft fabric retailer to file for bankruptcy protection.
Hancock filed for Chapter 11 protection in March 2007. The company reorganized and exited bankruptcy protection in August 2008.
The company last week said it posted a $40,000 loss for the third quarter, compared with a $1.4 million profit in the prior-year quarter.
Hancock’s year-to-date net loss is $6.1 million, compared with a $700,000 loss in fiscal 2010.
carlie.kollath@journalinc.com