INDIANAPOLIS, Ind. – Just days after announcing the closure of dozens of stores last week, Indianapolis-based HHGregg filed for Chapter 11 bankruptcy.
The company said it reached a deal with an undisclosed party “to purchase the assets of the company.” The deal will allow HHGregg to “exit Chapter 11 debt free with significant improvement in liquidity for the future stability of the business.” The petitions were filed Monday in the U.S. Bankruptcy Court for the Southern District of Indiana.
“We’ve given it a valiant effort over the past 12 months,” Robert J. Riesbeck, president and CEO, said in a statement. “We have conducted an extensive review of alternatives and believe pursuing a restructuring through Chapter 11 is the best path forward to ensure HHGregg’s long-term success. We are thankful for the continued support of our dedicated employees, valued customers, vendors and business partners as we navigate this process, and look forward to becoming a stronger company in the coming months.”
HHGregg said it hopes to emerge from Chapter 11 in about 60 days. Restructuring will allow the business to reach its long-term goals and boost profitability, the retailer said.
“We have streamlined our store footprint and remain fully committed to the 132 remaining stores, and the associates supporting those locations. We have solidified our senior management team and everyone is dedicated to restructuring our business model for future profitability and growth,” Riesbeck said. “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.”
The appliance and electronics chain announced plans last week to close 88 stores and three distribution centers nationwide. Company officials said its remaining 132 stores will continue normal operations during the restructuring.