Indianapolis-based hhgregg Inc. (NYSE: HGG) is preparing to file for bankruptcy, according to a report from Bloomberg. However, the publication says the electronics and appliance retailer is still hoping for an "out-of-court solution" that would allow it to avoid Chapter 11 protection.
Earlier this month, the company said it was working with financial advisory and investment banking firms to explore options for achieving its goal of returning to profitability.
The report marks the latest bit of bad news for the company. At the beginning of the month, hhgregg announced restructuring plans that led to 100 employees losing their jobs. While Chief Executive Officer Robert Riesbeck called the decision a difficult one, he said the move would help save $15 million annually.
hhgregg shares have been down around 20 percent in pre-market trading on the Bloomberg report. In January, hhgregg reported a fiscal third quarter net loss of $58.3 million, compared to a loss of $26.9 million during the same period the previous year.