HHGregg Bankruptcy: What’s Next for the Struggling Retailer?

Advertisement

HHGregg, Inc. (OTCMKTS:HGGG) has announced that it filed for Chapter 11 bankruptcy on Monday.

HHGregg, HHGregg Bankruptcy, HHGregg Inc., HGGGHHGregg, Inc. says that the Chapter 11 bankruptcy filing was made through the U.S. Bankruptcy Court for the Southern District of Indiana. The company says that it will undergo restructuring to return to profitability while in Chapter 11.

HHGregg, Inc. says that it doesn’t plan to remain in Chapter 11 bankruptcy for long. It plans to emerge from the bankruptcy protection within 60 days. It also also signed a deal with an anonymous party that will purchase its assets. This will allow it to improve liquidity and stability when it leaves bankruptcy protection.

“We have solidified our senior management team and everyone is dedicated to restructuring our business model for future profitability and growth,” Robert Riesbeck, President and CEO of HHGregg, Inc., said in a statement. “Through these strategic steps, we plan to come out of this debt free and more agile as we serve our valued customers and vendor partners, and continue to be a dominant force in appliances, electronics and home furnishings.”

When HHGregg, Inc. comes out of Chapter 11 bankruptcy protection, it will focus on 132 of its stores. It will continue with plans to close 88 of its locations after leaving bankruptcy protection. You can follow this link for a list of the stores that are closing.

HHGregg, Inc. says that it also plans to continue normal operations throughout the bankruptcy. This will be possible with $80 million in debtor-in-possession financing from Wells Fargo & Co (NYSE:WFC), National Association and GACP Finance Co., LLC, as well as with other funds. However, it will need approval from the bankruptcy court first to continue normal operations.

HGGG stock was down 19% as of Tuesday morning and is down 89% year-to-date.


Article printed from InvestorPlace Media, https://investorplace.com/2017/03/hhgregg-bankruptcy-hggg/.

©2024 InvestorPlace Media, LLC