Appliance and electronics retailer hhgregg Appliances Inc. is pulling the plug after more than 60 years in business.
The retailer kicked off an online and in-store liquidation sale on Saturday, about a month after hhgregg filed for Chapter 11 bankruptcy protection on March 6. On March 2, the retailer, No. 246 in the Internet Retailer 2016 Top 500 Guide, said it would close three distribution centers and 40%, or 88, of its 220 stores, and eliminate about 1,500 jobs.
“As previously announced, hhgregg executed a consulting agreement with a contractual joint venture comprised of Tiger Capital Group LLC and Great American Group LLC to conduct a sale of the merchandise and furniture, fixtures and equipment located at the company’s retail stores and distribution centers,” the company said in a statement Friday.
“While we had discussions with more than 50 private equity firms, strategic buyers and other investors, unfortunately, we were unsuccessful in our plan to secure a viable buyer of the business on a going-concern basis within the expedited timeline set by our creditors,” president and CEO Bob Riesbeck said.
Visitors to hhgregg.com are greeted with a going-out-of-business message, and the retailer, via its Twitter account, tells customers that it cannot accept returns or exchanges unless a product has a defect.
In its fiscal third quarter earnings release, hhgregg reported that losses had increased to $83.9 million through the first nine months of fiscal 2017 ended Dec. 31, compared with a $45.8 million loss during the same period a year ago. Hhgregg was founded in April 1955 in Indianapolis.
Hhgregg is among eight retailers to file for Chapter 11 bankruptcy so far this year.Favorite