House of Fabrics ended its talks on a merger.

Without explanation, the Sherman Oaks-based company and Home Silk Shop of Los Angeles said they have agreed to halt their merger talks. On April 10, the companies signed a letter of intent to discuss a merger. In a separate announcement, House of Fabrics, the nation's largest home-sewing retailer, said its earnings for the first quarter ended April 30 are expected to drop from its record first-quarter profit of $2.55 million posted last year, but sales, which will reach a record high for the period, will be above the previous year's $60.3 million.

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