OTHER NEWS - May 24, 1996

House of Fabrics Gets Credit Line: The Sherman Oaks-based retail chain said it has secured a $60-million revolving line of credit that will in effect allow it to emerge from Chapter 11 bankruptcy proceedings. The line is from CIT Group for an initial period of three years, effective the end of July. Pending court and shareholder approval, House of Fabrics Inc. is expected to emerge as “a smaller chain, a stronger chain and a chain with less debt,” spokeswoman Sandra Sternberg said. “But it’s clearly one with a lot of work still to be done.” The chain entered bankruptcy proceedings in November 1994. Since then, it has closed nearly 100 stores, laid off more than 1,000 people and changed its product mix.