LOS ANGELES COUNTY - News from Sept. 11, 1995

House of Fabrics: The Sherman Oaks-based company, in bankruptcy proceedings since last November, is to release its second-quarter earnings on Thursday or Frida. The 364-store chain filed a reorganization plan on Aug. 31 that called for emerging from bankruptcy by the end of January as a “strong, stable competitor.” Under the terms of the plan, House of Fabrics would convert about $120 million in short-term loans from a bank creditor group led by Bank of America to a 10-year term obligation. The plan would also give unsecured creditors 98% of the common stock initially issued by the reorganized company to satisfy their claims. Current shareholders would get the other 2%. The plan is still in negotiation. The company operates fabric stores in 34 states and employs 8,600. It reported a loss of $95.4 million on revenue of $416 million for the fiscal year ended Jan. 31, compared to a loss of $29.5 million on revenue of $547 million for fiscal 1994.