RETAILING

House of Fabrics Reorganization Plan OKd: The long-troubled Sherman Oaks chain of fabric stores said its joint plan of reorganization was confirmed by U.S. Bankruptcy Judge Kathleen T. Lax. The court’s approval came more than 20 months after the chain first filed for Chapter 11 bankruptcy protection. As part of the reorganization, the company closed more than 200 stores, reduced debt from $127 million to $50 million and cut expenses. The reorganization plan provides for discounted payment of $76.5 million in cash and repayment of borrowings to a group of lenders led by Bank of America. A total of 5.1 million shares in the reorganized company will be issued to creditors and equity holders. CEO Gary L. Larkins remains at the helm. House of Fabrics said it expects to emerge from bankruptcy by August.