Report: HHGregg to File for Bankruptcy Soon

Indianapolis retailer HHGregg with 229 stores in 20 states is due to file bankruptcy in the coming days, according to news reports.

 •

Another one bites the dust… maybe. Following in the footsteps of Circuit City and Tweeter, HHGregg is reportedly preparing to file for bankruptcy protection in the near future, according to Bloomberg News

Founded in 1995, the Indianapolis-based retailer with 229 brick-and-mortar retail stores in 20 states was earlier this month put on notice for potential delisting by the New York Stock Exchange due to its low stock price. In the most recent CE Pro analysis of public company stocks, HHGregg was the worst performer in 2016, moving from $3.66 per share at the beginning of 2016 to just $1.42/share at the end of the year. The stock is currently trading at just 27 cents per share. 

The company uses independent contractors as its field installation force, many of whom are likely CE pros. HHGregg has stores in Alabama, Delaware, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Mississippi, Missouri, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, West Virginia and Wisconsin. 

The typical new stores range from 25,000 to 30,000 square feet. The company carries approximately 350 models of major appliances, consumer electronics, computing and wireless products, home furniture, mattresses and fitness equipment. 

SEE RELATED: 2106 CE Public Company Stock Performance

According to Bloomberg, the company has lost money for the past two fiscal years and its holiday sales were down 24 percent. On February 15, the company hired a legal firm to help find ways to improve cash flow. It is reportedly trying to stave off Chapter 11 via an out-of-court solution. 

Bloomberg quoted CEO Robert Riesbeck as saying, “We’re focused on continuing to execute our business strategy, as planned, and returning this company to profitability.”

About the Author

Jason Knott
Follow
Jason Knott:

Jason Knott is Chief Content Officer for Emerald's Connected Brands. Jason has covered low-voltage electronics as an editor since 1990, serving as editor and publisher of Security Sales & Integration. He joined CE Pro in 2000 and serves as Editor-in-Chief of that brand. He served as chairman of the Security Industry Association’s Education Committee from 2000-2004 and sat on the board of that association from 1998-2002. He is also a former board member of the Alarm Industry Research and Educational Foundation. He has been a member of the CEDIA Business Working Group since 2010. Jason graduated from the University of Southern California.

ARTICLE TOPICS:

NewsOperations

ARTICLE TAGS:

LegalRetail