House of Fabrics Gets Go-Ahead to Restock

House of Fabrics Inc., a Sherman Oaks-based fabric retailer that filed for Chapter 11 bankruptcy protection last Wednesday, said the bankruptcy court has approved its use of cash flow from company operations to purchase merchandise and fund ongoing operations through the end of the month.

The company said the decision allows it to begin receiving shipments of standard items for its stores and to renew stock that has been in short supply in recent months. It will also begin ordering merchandise for the spring season, it said.

Another hearing will be held Nov. 29 to consider House of Fabrics’ request that it be allowed to continue using its cash flow beyond this month.

House of Fabrics, a once-thriving chain of fabric stores, has suffered recently from competition, the weak California economy and heavy debt. It plans to close about 200 of its more than 600 stores nationwide.