Hhgregg Files for Bankruptcy

Company committed to the remaining 132 stores
March 8, 2017Allison Zisko

HHGreggFULLINDIANAPOLIS—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 company announced earlier this month that it would close 88 stores and lay off 1,500 of its roughly 5,000 employees. Riesbeck said hhgregg remains “fully committed” to the remaining 132 stores and its associates. “We have solidified our senior management team and everyone is dedicated to restructuring our business model for future profitability and growth,” he 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 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.

Allison ZiskoAllison Zisko | Managing Editor/Tabletop Editor
azisko@hfnmag.com

After 15 years of covering the tabletop industry, Allison Zisko is still as enthusiastic as ever about the dinnerware, glassware and flatware categories. An in-depth analysis of how the category works intrigues her just as much as the latest fashion trends. As managing editor, Allison oversees the daily e-newsletter and works behind the scenes to help produce the print issue each month. She also directs HFN’s housewares coverage and covers the cutlery category. An avid reader, Allison is eager to talk to anyone and everyone about the latest book they are reading.

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