The Pension Benefit Guaranty Corp. will take over the defined benefit plan of Hancock Fabrics Inc., Irving, Texas, said a PBGC spokeswoman.
Hancock Fabrics filed for Chapter 11 bankruptcy protection in February.
The company’s DB plan has roughly $58.3 million in assets and $116.2 million in liabilities for a shortfall of $57.9 million and funding ratio of 50.2%, the PBGC estimates.
The PBGC will cover “virtually all of the shortfall,” the spokeswoman wrote.
Hancock Fabrics’ qualified DB plan was frozen in 2008 and terminated on Nov. 15. There are 4,149 participants.
