Bankrupt House of Fabrics to Issue 5.1 Million Shares

House of Fabrics Inc., a Sherman Oaks chain of retail fabric stores, said it will reduce the number of shares it plans to issue as part of its proposed reorganization under Chapter 11 bankruptcy proceedings.

The company had planned to ask the court to allow the issue of 13.7 million shares on the effective date of the reorganization, but has modified that request to 5.1 million shares, the company said. The change is aimed at increasing the price of the company’s shares to meet requirements for trade on major exchanges.

House of Fabrics filed for bankruptcy protection in November 1994. The New York Stock Exchange suspended trading in its stock in May.

The court hearing to confirm House of Fabrics’ reorganization plan is scheduled for Wednesday.