House of Fabrics Narrows Losses to $5.52 Million

House of Fabrics Inc., a Sherman Oaks fabrics retailer that has been operating under Chapter 11 bankruptcy protection for more than a year, narrowed its losses in its fiscal third quarter.

In the three months that ended Oct. 31, the company lost $5.52 million, in contrast with a loss of $73.2 million a year earlier. Its sales totaled $92.3 million, up slightly from $90.6 million in sales a year before.

House of Fabrics’ nine-month loss was $24.5 million, compared to an $86.3-million loss in the comparable period a year earlier. Its nine-month sales fell 25%, to $238 million from $315.4 million.

The company said it expects to continue to improve its financial condition as it pares expenses and closes unprofitable stores. It currently operates 361 fabric stores in 34 states.

House of Fabrics also said it reached a tentative agreement with its bankers, led by Bank of America, to extend its debtor-in-possession financing, totaling $17.3 million, through the end of April.

The company’s previous financing facility was due to expire on Jan. 31.