Indianapolis-based hhgregg has filed for Chapter 11 bankruptcy protection. Chief Executive Officer Robert Riesbeck says, despite "a valiant effort over the past 12 months," the move is "the best path forward to ensure hhgregg’s long-term success." The company says it has signed a term sheet with an anonymous party to purchase its assets, and expects to emerge from bankruptcy in 60 days.
Riesbeck says the company remains fully committed to its remaining stores and senior management team. He says the company plans to "come out of this debt free and more agile."
hhgregg made the filing in the United States Bankruptcy Court for the Southern District of Indiana. The company says its 132 stores will continue to operate throughout the restructuring process. Last week, the electronics and appliance retailer announced plans to close 88 stores and three distribution centers in a move impacting about 1,500 employees. None of those closings are in Indiana.
In February, the New York Stock Exchange delisted the company after its global market capitalization over a consecutive 30-day trading period fell below $15 million.
The retailer has been working with two financial advisory and investment banking firms to "pursue a range of potential strategic and financial transactions." In January, 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.
You can see the filing by clicking here.