By Associated Press - Tuesday, August 5, 2014

TUPELO, Miss. (AP) - Hancock Fabrics has dropped plans to go private.

The craft and fabrics retailer announced in April its desire to no longer be publicly traded.

Company president and CEO Steve Morgan says in a news release Monday the costs of the conversion outweighed the benefits. He says the money could be better used to improve its business.

Tupelo-based Hancock’s plan was to pay $1.20 per share to shareholders with less than 1,000 shares of company stock. It expected to incur a $936,000 cost for the move.

Hancock expected to save about $640,000 annually after going private.

The proposal was scheduled to go for a vote at the company shareholders meeting Aug. 15.

Morgan says the company hasn’t abandoned the idea of going private or some other “alternative transaction” in the future.

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