Hhgregg Files for Bankruptcy
March 8, 2017,
INDIANAPOLIS—Specialty retailer hhgregg has filed for Chapter 11 bankruptcy protection, with the plan of emerging debt free in 60 days.
The company signed a term sheet with an anonymous party to purchase the assets of the company, the company said in a statement. The filing was made in the Southern District of Indiana.
“We’ve given it a valiant effort over the past 12 months,” said Robert J. Riesbeck, president and CEO. “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.”
The retailer also said it intends to continue to pay suppliers and vendors for goods and services throughout the restructuring process, and has obtained a committed $80 million debtor-in-possession financing facility underwritten by Wells Fargo Bank, National Association and GACP Finance Co. LLC. This DIP financing, which is subject to court approval, combined with the acquiring party’s investment and the company’s cash from operations, is expected to provide sufficient liquidity during the Chapter 11 case to support its continuing normal business operations and minimize disruption, hhgregg said.