The craft and fabrics retailer announced in April its desire to no longer be publicly traded.
Company officials said the costs of the conversion outweighed the benefits, and the money could be better used to improve its business. Hancock is slowly reformatting its stores, but it is a capital-intensive project for the 261-store chain.
However, officials said some shareholders were splitting their shares to go below the 1,000-share threshold or buying shares through multiple accounts in order to get a pay-out.
"This activity resulted in a significant increase in the expected cost of the proposed transaction, eliminating virtually a full year of the potential expected savings that the company anticipated would have resulted from going private," the company said.
Hancock expected to save about
The proposal was scheduled to go for a vote at the company shareholders meeting
But, said company president and CEO
Morgan said the company hasn't abandoned the idea of going private or some other "alternative transaction" in the future.
But that will happen only if it becomes "economically prudent" and in the best interest of the company and its shareholders, he said.
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