Indianapolis-based hhgregg Inc. has dropped a previously-announced, non-binding deal with an anonymous buyer. Chief Executive Officer Robert Riesbeck says the appliance, electronics and furniture retailer has received "strong interest" from other potential buyers and will continue operations as usual throughout the sale and restructuring process. Riesbeck continues "we and our advisors continue to work with potential acquirors to help them understand our business model for future growth and our value proposition."
The company says it was unable to reach a definitive agreement with the suitor on terms of the purchase of its assets. hhgregg also says it has received interim approval of an $80 million debtor-in-possession loan facility to fund operations through Chapter 11 bankruptcy and the attempted sale.
The restructuring will leave the chain with 132 stores. Earlier this month, hhgregg announced it would close 88 stores and let go some 1,500 workers throughout the country as the company works to return to profitability. Store closings and layoffs are expected to take place by the middle of next month.