Popular electronics and home appliance retailer files for Chapter 11

A well-known electronics and home appliance retailer in the U.S. recently announced that the business filed for Chapter 11 bankruptcy.

HHGregg, which has multiple consumer stores and a distribution center in New Jersey and more than a dozen stores in Pennsylvania, made the announcement on Tuesday.

The filing comes just days after the company announced it was shutting down 88 stores in 15 states, a move made to give the Indianapolis-based company a better chance at survival, according to an article published by the Indy Star.

USA Today reports that HHGregg will close the following local stores:

In New Jersey:

• Deptford, Woodbury
• Mays Landing
• Moorestown

In Pennsylvania:

• Dickson City
• Downingtown
• Erie
• King of Prussia/ Berwyn
• Lancaster
• Langhorne
• Lower Paxon/ Harrisburg
• Mechanicsburg
• Montgomeryville/ North Wales
• North Hills/ Pittsburgh
• Whitehall
• Whitman Square/ Philadelphia
• Wilkes-Barre
• Wyomissing
• York

A news release by HHGregg explains that the business has signed a term sheet with an anonymous party to buy the retailer’s assets. 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.”

Robert J. Riesbeck, president and CEO of HHGregg said in the release that the company has given a valiant effort, which included a review of alternative routes, but they believe restructuring through Chapter 11 is the best option to ensure the company long-term success.

“Riesbeck said he expects the Chapter 11 process to be smooth and quick,” the article reads. “The company expects to emerge from the restructuring in about 60 days.”

The store closures, which were announced last Friday, should be complete sometime in April. About 1,500 people are expected to be laid off. This is the company’s second round of layoffs. Last month, HHGregg announced it was laying off about 100 people.

About 132 U.S. stores will continue with their usual day-to-day business.

“Over the years, the retailer has struggled for market share against online retailers and traditional big-box stores such as Best Buy,” the article reads. “To stand out, the company has tried to reinvent itself as a high-end appliance store through its Fine Lines division.

HHGregg is the seventh-largest appliance retailer in the U.S.

The post Popular electronics and home appliance retailer files for Chapter 11 appeared first on Young, Marr & Associates.

from Young, Marr & Associates http://ift.tt/2nd8qVx
via IFTTT