Lucky Stores set the terms of a spinoff.

In proxy materials, the Dublin, Calif., supermarket company said it expects shareholders to receive one share of the Hancock Fabrics unit for every three Lucky shares when the company is spun off, probably in May. No date has been set for the distribution. Lucky also said it expects that Hancock will pay a quarterly dividend of about 10 cents a share, starting in the second quarter of the fiscal year that began Feb. 2.