House of Fabrics Plans to Buy Back 7.4% of Stock

House of Fabrics Inc. said it plans to buy up to an additional 1 million shares, or 7.4%, of its total common stock outstanding.

The Sherman Oaks-based operator of the nation’s largest fabric store chain said it would repurchase the stock periodically on the open market or through private trades. House of Fabrics has 13.6 million shares outstanding.

The repurchase would cost about $21 million based on the stock’s closing price Monday of $20.625 a share in New York Stock Exchange composite trading.

The company recently repurchased 1 million shares. It said its board authorized the additional buyback because the stock’s current price “does not accurately reflect the underlying value” of the company.