|   | [X]      Quarterly Report Pursuant to Section 13 or 15(d) of the Securities      Exchange Act of 1934 |
|--------|-------------------------------------------------------------------------------------------------------|

|   | For      the quarterly period ended May 5,2007 |
|--------|------------------------------------------------|

|   | OR |
|--------|----|

|   | [ ]      Transition Report Pursuant to Section 13 or 15(d) of the Securities      Exchange Act of 1934 |
|--------|--------------------------------------------------------------------------------------------------------|

|   | For      the transition period from  ____________to___________. |
|--------|-----------------------------------------------------------------|

|   | Commission      File Number 1 – 9482 |
|--------|--------------------------------------------|

|   | HANCOCK      FABRICS, INC. |
|--------|----------------------------|

|   | (Exact      name of registrant as specified in itscharter) |
|--------|------------------------------------------------------------|

| Delaware                               | 64-0740905               |
|----------------------------------------|--------------------------|
| (State      or other jurisdiction      | (I.R.S.      Employer    |
| of      incorporation or organization) | Identification      No.) |

| One      Fashion Way, Baldwyn, MS             | 38824           |
|-----------------------------------------------|-----------------|
| (Address      of principal executive offices) | (Zip      Code) |
|                                          |            |

|   | (662)      365-6000 |
|--------|---------------------|

|   | Registrant’s      telephone number, including areacode |
|--------|--------------------------------------------------------------|

----

| INDEX                                                                                                                    |                    |
|--------------------------------------------------------------------------------------------------------------------------|-------------------------|
|                                                                                                                     |                    |
| Part      I.  Financial Information                                                                            | Page      Numbers  |
| Item      1.  Financial Statements                                                                             | 1                  |
| Item      2.  Management’s Discussion and Analysis of Financial Condition      and Results of Operations | 1                  |
| Item      3.  Quantitative and Qualitative Disclosures about Market      Risks                                 | 1                  |
| Item      4.  Controls and Procedures                                                                          | 1                  |
| Part      II.  Other Information:                                                                              |               |
| Item      1.  Legal Proceedings                                                                                | 1                  |
| Item      1A.  Risk Factors Unregistered Sales of Equity Securities and      Use of Proceeds                   | 1                  |
| Item      2.  Unregistered Sales of Equity Securities and Use of      Proceeds                                 | 1                  |
| Item      3.  Defaults Upon Senior Securities                                                                  | 1                  |
| Item      6.  Exhibits                                                                                         | 1                  |
| Signature                                                                                                                |                    |

----

| ITEM      2:  MANAGEMENT’S DISCUSSION AND ANALYSIS OF      FINANCIAL |
|--------------------------------------------------------------------------------------|

| ITEM      3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET    RISKS |
|-----------------------------------------------------------------------------|

| ITEM      4: CONTROLS AND PROCEDURES |
|--------------------------------------|

| PART      II. OTHER INFORMATION: |
|----------------------------------|

| ITEM      1:  LEGAL PROCEEDINGS |
|-------------------------------------------|

| ITEM      1A:  RISK FACTORS |
|---------------------------------------|

| ITEM      2:  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF      PROCEEDS |
|------------------------------------------------------------------------------------------|

| ITEM      3:  DEFAULTS UPON SENIORSECURITIES |
|--------------------------------------------------------|

| FORWARD-LOOKING      STATEMENTS |
|---------------------------------|

| ITEM      6: EXHIBITS |
|-----------------------|

| 31.1 | Certification      of Chief Executive Officer Pursuant to Rule 13a-14(a)  Under |
|------|---------------------------------------------------------------------------------|

|   | The      Securities Exchange Act of 1934 |
|--------|------------------------------------------|

| 31.2 | Certification      of Chief Financial Officer Pursuant to Rule 13a-14(a)  Under |
|------|---------------------------------------------------------------------------------|

|   | The      Securities Exchange Act of 1934 |
|--------|------------------------------------------|

| 32 | Certification      of Chief Executive Officer and Chief Financial Officer Pursuant to Rule      13a-14(b) Under |
|----|-----------------------------------------------------------------------------------------------------------------|

|   | The      Securities Exchange Act of 1934 and 18 U.S.C. Section  1350 |
|--------|----------------------------------------------------------------------|

----

| SIGNATURE |
|-----------|

| Date:  April      17, 2008 |
|--------------------------------------|

----

| I,      Jane F. Aggers, certify that: |
|---------------------------------------|

| 1. | I      have reviewed this quarterly report on Form 10-Q for the quarter ended May      5, 2007, of Hancock Fabrics, Inc.; |
|----|---------------------------------------------------------------------------------------------------------------------------|

| 2. | Based      on my knowledge, this report does not contain any untrue statement of a      material fact or omit to state a material fact necessary to make the      statements made, in light of the circumstances under which such statements      were made, not misleading with respect to the period covered by this      report; |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Based      on my knowledge, the financial statements, and other financial information      included in this report, fairly present in all material respects the      financial condition, results of operations and cash flows of the      registrant as of, and for, the periods presented in this      report; |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Our      other certifying officer and I are responsible for establishing and      maintaining disclosure controls and procedures (as defined in Exchange Act      Rules 13a-15(e) and 15d-15(e)) and internal control over financial      reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for      the registrant and we have: |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a) | designed      such disclosure controls and procedures, or caused such disclosure      controls and procedures to be designed under our supervision, to ensure      that material information relating to us, including our consolidated      subsidiaries, is made known to us by others within those entities,      particularly during the period in which this report is being      prepared; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | designed      such internal control over financial reporting, or caused such internal      control over financial reporting to be designed under our supervision, to      provide reasonable assurance regarding the reliability of financial      reporting and the preparation of financial statements for external      reporting purposes in accordance with generally accepted accounting      principles; |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | evaluated      the effectiveness of our disclosure controls and procedures and presented      in this report our conclusions about the effectiveness of the disclosure      controls and procedures, as of the end of the period covered by this      report based on such evaluation;and |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | disclosed      in this report any change in the our internal control over financial      reporting that occurred during our most recent fiscal quarter that has      materially affected, or is reasonably likely to affect, our internal      control over financial reporting;and |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Our      other certifying officer and I have disclosed, based on our most recent      evaluation of internal control over financial reporting, to our auditors      and the audit committee of our board of  directors: |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a) | all      significant deficiencies and material weaknesses in the design or      operation of internal control over financial reporting which are      reasonably likely to adversely affect our ability to record, process,      summarize and report financial information;and |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | any      fraud, whether or not material, that involves management or other      employees who have a significant role in our internal control over      financial reporting. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Exhibit      31.2 |
|--------|-------------------|

| I,      Robert W. Driskell certify that: |
|------------------------------------------|

| 1. | I      have reviewed this quarterly report on Form 10-Q for the quarter ended May      5, 2007, of Hancock Fabrics, Inc.; |
|----|---------------------------------------------------------------------------------------------------------------------------|

| 2. | Based      on my knowledge, this report does not contain any untrue statement of a      material fact or omit to state a material fact necessary to make the      statements made, in light of the circumstances under which such statements      were made, not misleading with respect to the period covered by this      report; |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Based      on my knowledge, the financial statements, and other financial information      included in this report, fairly present in all material respects the      financial condition, results of operations and cash flows of the      registrant as of, and for, the periods presented in this      report; |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Our      other certifying officer and I are responsible for establishing and      maintaining disclosure controls and procedures (as defined in Exchange Act      Rules 13a-15(e) and 15d-15(e)) and internal control over financial      reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for      the registrant and we have: |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a) | designed      such disclosure controls and procedures, or caused such disclosure      controls and procedures to be designed under our supervision, to ensure      that material information relating to us, including our consolidated      subsidiaries, is made known to us by others within those entities,      particularly during the period in which this report is being      prepared; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | designed      such internal control over financial reporting, or caused such internal      control over financial reporting to be designed under our supervision, to      provide reasonable assurance regarding the reliability of financial      reporting and the preparation of financial statements for external      reporting purposes in accordance with generally accepted accounting      principles; |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | evaluated      the effectiveness of our disclosure controls and procedures and presented      in this report our conclusions about the effectiveness of the disclosure      controls and procedures, as of the end of the period covered by this      report based on such evaluation;and |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | disclosed      in this report any change in the our internal control over financial      reporting that occurred during our most recent fiscal quarter that has      materially affected, or is reasonably likely to affect, our internal      control over financial reporting;and |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Our      other certifying officer and I have disclosed, based on our most recent      evaluation of internal control over financial reporting, to our auditors      and the audit committee of our board of  directors: |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a) | all      significant deficiencies and material weaknesses in the design or      operation of internal control over financial reporting which are      reasonably likely to adversely affect our ability to record, process,      summarize and report financial information;and |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | any      fraud, whether or not material, that involves management or other      employees who have a significant role in our internal control over      financial reporting. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Date:  April      17, 2008 |
|--------------------------------------|

----

|   | Exhibit      32 |
|--------|-----------------|

| Date:  April      17, 2008 |
|--------------------------------------|