hhgregg Exploring ‘Strategic Alternatives’
Indianapolis-based hhgregg Inc. (NYSE: HGG) is exploring options for achieving its goal of returning to profitability. The company has enlisted the services of two financial advisory and investment banking firms to "pursue a range of potential strategic and financial transactions."
The company says the exploration process does not guarantee there will be any form of transaction or "strategic alternative." Two subsidiaries of Missouri-based Stifel Financial Corp. (NYSE: SF), Stifel, Nicolaus & Co. Inc. and Miller Buckfire & Co. LLC, were chosen to lead the process, for which there is no timetable for completion.
"We are committed to improving our results through our business strategy, including investments made to shift our focus to appliances and furniture, and additional expected cost reductions," said Robert Riesbeck, chief executive officer of hhgregg. "We believe it is an appropriate time to explore potential strategic transactions. As the Company undertakes this exploration process, we are focused on the execution of our business strategy and remain fully committed to serving our customers’ needs."
Last month, hhgregg reported a fiscal third quarter net loss of $58.3 million, which was more than double the company’s net loss from the same period a year earlier.