House of Fabrics Asked to Submit Merger Offer

House of Fabrics Inc., which is pursuing an unsolicited takeover of Fabricland Inc., said Fabricland agreed to provide it with certain non-public information while asking that House of Fabrics submit a merger offer by Friday.

House of Fabrics, based in Sherman Oaks, already has launched a tender offer for Fabricland’s stock of $13.50 a share, or a total of $44 million. Fabricland, a Portland, Ore.-based concern, has rejected that bid as inadequate. Both companies operate retail chains specializing in fabrics and sewing notions.

House of Fabrics also said the companies agreed to halt further legal action against each other in connection with the takeover bid. But Fabricland cautioned that “there can be no assurance” that a merger “would ultimately be consummated.”