Liquidation Underway at hhgregg
hhgregg shares have been down around 20 percent in pre-market trading on the Bloomberg report.
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIndianapolis-based hhgregg Inc. says it has been unable to locate a buyer and has begun liquidating assets. The financially-troubled retailer says all of its stores will close. On March 31, the more than 60 year-old electronics and furniture retailer announced it had one week left to find a buyer or an arrangement with Tiger Capital Group LLC and Great American Group LLC to sell would kick in.
Chief Executive Officer Bob Riesbeck says "since filing for financial protection under Chapter 11 of the Bankruptcy code on March 6, 2017, we have continued to fight for the future of our company. While we had discussions with more than 50 private equity firms, strategic buyers, and other investors, unfortunately, we were unsuccessful in our plan to secure a viable buyer of the business on a going-concern basis within the expedited timeline set by our creditors. We have, however, received and accepted a bid for liquidation of our assets. This process will begin Saturday, April 8, 2017."
Late last month, hhgregg announced a previous deal with an unnamed buyer had fallen through. The company filed for Chapter 11 bankruptcy protection on March 6. Its final quarterly earnings report before the filing showed a fiscal third quarter net loss of $58.3 million.
The company went public on the New York Stock Exchange in 2007. hhgregg previously detailed cuts that include 88 stores employing around 1,500 workers. The remaining portfolio includes 132 locations.
hgregg says it will sell the "merchandise and furniture, fixtures and equipment" at its stores and distribution centers in 19 states.