It’s official. HHGregg has filed for chapter 11 bankruptcy according to this IndyStar report.
Officials with electronics and appliance retailer HHGregg announced Tuesday that the struggling business has filed for Chapter 11 bankruptcy.
News of the filing comes just days after the company announced the shuttering of 88 stores in 15 states, a major move made to give the retailer a better chance at survival.
Indianapolis-based HHGregg has signed a term sheet with an anonymous party to purchase its assets, the news release says. The selling of assets will allow the company to exit Chapter 11 “debt free with significant improvement in liquidity for the future stability of the business.”
“We’ve given it a valiant effort over the past 12 months,” Robert J. Riesbeck, HHGregg’s 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.
HHGregg, which has lost money for the past two years, recently reported poor holiday sales. Sales at stores that have been opened for at least a year declined by 22.2 percent during the most recent fiscal quarter, which included the holidays.
HHGregg will close stores in 15 states: Alabama, Delaware, Florida, Georgia, Illinois, Louisiana, Maryland, Missouri, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia and West Virginia. The company is also closing distribution centers in Brandywine, Md., Miami and Philadelphia.