812906--2/19/2008--HANCOCK_FABRICS_INC

related topics

{debt, indebtedness, cash}

{personnel, key, retain}

{control, financial, internal}

{tax, income, asset}

{condition, economic, financial}

{customer, product, revenue}

We have risk relating to our financial condition and liquidity. Our continuing failure to timely file certain periodic reports with the SEC poses significant risks to our business, each of which could materially and adversely affect our financial condition and results of operations. Taxing authorities could disagree with our tax treatment of certain deductions or transactions, resulting in unexpected tax assessments. Our current cash resources might not be sufficient to meet our expected near-term cash needs. Business matters encountered by our suppliers may adversely impact our ability to meet our customers needs. Our ability to attract and retain skilled people could have a material adverse effect on our operations.

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