Indianapolis, IN—A visit to the website of troubled electronic chain hhgregg makes it clear the company is shuttering its stores. It is now holding a chain-wide going-out-of-business sale. The 62-year-old retailer had announced on March 6 that it filed for Chapter 11 reorganization. Shortly after, it began negotiating with a potential buyer.
“We have received strong interest from third parties interested in buying some or all of the company’s assets,” said Robert J. Riesbeck, hhgregg’s president and CEO, on March 16, 2017. “We and our advisors continue to work with potential acquirers to help them understand our business model for future growth.”
The company had obtained interim approval of its $80 million debtor-in-possession loan facility to fund operations of the business during the sale process. Furthermore, hhgregg was to continue to operate in the ordinary course of business throughout the restructuring process.
However, having failed to complete the acquisition, and with no other buyer in sight by deadline, hhgregg is now liquidating its assets. The company expects to close its 220 stores by the end of May. The shuttering will result in about 5,000 layoffs across the country.
“While we had discussions with more than 50 private equity firms, strategic buyers and other investors, unfortunately, we were unsuccessful in our plan to secure a viable buyer of the business on a going-concern basis within the expedited timeline set by our creditors,” Riesbeck later announced. Riesbeck became CEO of the Indianapolis-based electronics chain in February 2016. He took the held at a time when the company was looking for drastic measures to survive.
The company also announced that the bankruptcy process is limiting returns on items bought before March 6 to $2,850.
hhgregg was founded by Henry Harold Gregg and his wife, Fansy, in 1955. Founded in Princeton, Indiana, hhgregg is headquartered in Indianapolis, Indiana. At its peak, the consumer electronics as well as home appliance retailer employed more than 3,700 full-time associates. hhgregg.com