Rough News For hhgregg

Posted: Updated:
INDIANAPOLIS -

Indianapolis-based hhgregg Inc. (NYSE: HGG) has announced restructuring plans that have led to 100 employees losing their jobs. In a separate announcement, the company says it could face suspension or delisting from the New York Stock Exchange.

The company says the restructuring of its field and corporate work force will help save $15 million annually. Chief Executive Officer Robert Riesbeck says the decision was a difficult one.

"While decisions like this are never easy, we are taking the necessary steps to preserve and grow our business during the continued challenging retail environment," said Riesbeck. "The organizational changes implemented [Friday] will streamline our company infrastructure and allow us to reallocate resources to align more closely with our company goals. We are dedicated to enhancing our customers’ experience both in-store and online, and to delivering superior value for our customers and stakeholders. Moving forward, we are prioritizing the growth of our home furnishings, Fine Lines, e-Commerce and commercial segments, while refining our focus on our consumer electronics and appliance businesses."

The NYSE notified earlier this week hhgregg that it had not maintained an average closing price of more than $1.00 per share over a period of 30 consecutive trading days. The company says it intends to notify the NYSE within 10 days of its intent to comply with the requirement.

"The Company has six months from the date of the NYSE Letter to regain compliance by having a closing stock price of at least $1.00 on the last trading day of any calendar month during the six month period and an average closing stock price of at least $1.00 over the 30 trading-day period end on the last trading day of that same month, or by meeting both of those conditions as of the last trading day of the six month period," the company said in a news release.

Additionally, hhgregg says it is also out of compliance by having an average global market capitalization of less than $50 million over a period of 30 consecutive trading days while its stockholders' equity was less than $50 million at the same time. The company will have 45 days to submit a plan to the NYSE Listing Operations Committee and, if accepted, will have 18 months to regain compliance.

If the company fails to regain compliance related to either of the two requirements, it will be subject to suspension and delisting from the NYSE. hhgregg says the notification from the NYSE does not affect is business operations.

  • Perspectives

    • Why Blogging Without Rules Produces the Best Content

      I spend a lot of time talking with people about what makes writing good. Depending on who you ask, good writing might be exciting and illustrative. It might be simple and efficient. If you ask someone who works in marketing, good writing translates to whatever helps a marketing strategy generate more leads, or more sales, or more of whatever a business is looking to gain. Though I fully respect and agree with this results-oriented perspective on content, in practice it can be...

    More

Events



  • Most Popular Stories

    • The Honda Greensburg plant opened in 2008.

      Honda to Invest $4M, Add Jobs at Greensburg Plant

      The American Honda Motor Co. continues to invest in its Greensburg, Indiana plant as it has announced the factory will be producing the company’s first electrified sport utility vehicle in the U.S. The company says it will invest more than $4 million and add 34 new jobs in the plant to support production of the CR-V Hybrid.  

    • (photo courtesy of The Times of Northwest Indiana)

      Valpo Mansion May Fall to Wrecking Ball

      A one-time mansion that once hosted dignitaries and politicians while they visited Valparaiso appears to be facing demolition, following years of decline and disrepair.  The stately mansion, known locally as the Brown home, maybe knocked down and replaced with condominiums, according to our partners at The Times of Northwest Indiana. 

    • Socio received the Top-Rated Overall Culture award. (Provided Photo/Socio)

      Inaugural Tech Culture Award Winners Unveiled

      Indianapolis-based Powderkeg has unveiled the winners of the inaugural Indiana Breakout Tech Culture Awards. Eleven Hoosier tech companies received the honors based on survey rankings from the 2019 Tech Census, which focused specifically on tech cultures. Nearly 270 tech companies were nominated and the winners were selected from a group of 50 finalists. More than 1,300 individuals responded to the survey, which allowed employees to rate their companies and employers on...

    • Photo courtesy of Purdue University

      Purdue Offers 'Stranger Things' Replica Tee

      Purdue University has partnered with trademark licensing agent CLC to produce a special-edition replica Purdue shirt that appeared on an episode of Netflix’s “Stranger Things 3.”  The university also teamed up with Venley to accurately replicate the shirt, which will be available at retailers on the West Lafayette campus and online later this month.

    • Mearns was named Ball State's president in 2017.

      Ball State President Bullish on Growth Potential

      The president of Ball State University says he is optimistic about the growth trajectory for the school and the Muncie community at large. Ball State recently set a new record for total enrollment with more than 22,000 students, including its largest-ever freshman class. The university is also continuing with several major capital projects, including the more than $87 million Foundational Sciences building, which broke ground earlier this month. In an interview in Studio (i) with...