X0202 4 2007-06-01 0000812906 HANCOCK FABRICS INC HKFIQ.PK 0001386790 Sopris Capital Advisors LLC 314 SOUTH GALENA STREET, SUITE 300 ASPEN CO 81611-1818 0 0 1 0 0001127939 ASPEN ADVISORS LLC 152 WEST 57TH STREET 46TH FLOOR NEW YORK NY 10019 0 0 1 0 0001237606 HECHT NIKOS C/O ASPEN ADVISORS LLC 152 WEST 57TH STREET - 46TH FLOOR NEW YORK NY 10019 0 0 1 0 Common Stock 2007-06-01 4 P 0 33500 2.61 A 368410 I Through managed accounts Common Stock 2007-06-04 4 P 0 13800 2.75 A 382210 I Through managed accounts Common Stock 2007-06-05 4 P 0 4000 3.00 A 386210 I Through managed accounts Common Stock 2007-06-01 4 P 0 142500 2.61 A 1771190 I Through a partnership and managed accounts Common Stock 2007-06-04 4 P 0 63700 2.75 A 1834890 I Through a partnership and managed accounts Common Stock 2007-06-05 4 P 0 20000 3.00 A 1854890 I Through a partnership and managed accounts All of the 386,210 shares reported in Table I, are owned by private institutional accounts (the "Aspen Managed Accounts") managed by Aspen Advisors LLC, a Delaware limited liability company ("Aspen Advisors"). Aspen Advisors disclaims any beneficial interest in the securities owned by the Aspen Managed Accounts. Mr. Nikos Hecht is the managing member of Aspen Advisors. By virtue of such status he may be deemed the beneficial owner of the securities held by the Aspen Managed Accounts under Regulation 13D-G under the Exchange Act. Mr. Hecht disclaims any beneficial interest in the securities owned by the Aspen Managed Accounts. Except as expressly acknowledged herein, this report shall not be deemed an admission that any such person or entity is the beneficial owner of, any such securities for purposes of Section 16 of the Exchange Act or for any other purpose. Of the 1,854,890 shares reported in Table I, Sopris Partners Series A, a series of Sopris Capital Partners, L.P, a Delaware limited partnership (the "Sopris Partnership"), owns 1,328,940 shares and private institutional accounts (the "Sopris Managed Accounts") managed by Sopris Capital Advisors LLC, a Delaware limited liability company ("Sopris Advisors") own 525,950 shares. Sopris Capital LLC (the "Sopris General Partner") is the general partner of the Sopris Partnership. The Sopris Partnership and the Sopris General Partner disclaim any beneficial interest in the securities owned by the Sopris Managed Accounts, and the Sopris General Partner disclaims any beneficial interest in the securities owned by the Sopris Partnership in excess of a .61% pecuniary interest therein, calculated in accordance with Rules 16(a)-1(a)(2) and (a)(3) under the Exchange Act. (continued in Footnote 3) Sopris Advisors disclaims any beneficial interest in the securities owned by the Sopris Partnership and the Sopris Managed Accounts. Mr. Nikos Hecht is the sole member of the managing member of the Sopris General Partner and the managing member of Sopris Advisors. By virtue of such status he may be deemed the beneficial owner of the securities held by the Sopris Partnership and the Sopris Managed Accounts under Regulation 13D-G under the Exchange Act. Mr. Hecht disclaims any beneficial interest in the securities owned by the Sopris Partnership other than a .52% pecuniary interest in such shares, calculated in accordance with rules 16(a)-1(a)(2) and (a)(3). He disclaims any beneficial interest in the securities owned by the Sopris Managed Accounts. (continued in Footnote 4) Except as expressly acknowledged herein, this report shall not be deemed an admission that any such person or entity is the beneficial owner of, or has a pecuniary interest, in any such securities for purposes of Section 16 of the Exchange Act or for any other purpose. ASPEN ADVISORS LLC By: /s/ NIKOS HECHT, Managing Member 2007-06-05 SOPRIS CAPITAL ADVISORS, LLC By: /s/ NIKOS HECHT, Managing Member 2007-06-05 /s/ NIKOS HECHT 2007-06-05