Electronics/appliances retailer files Chapter 11; finds buyer

Indianapolis-based Hhgregg has filed for bankruptcy.



The move came just days after the struggling chain announced a big wave of store closings.



In a statement, Hhgregg said it has reached an agreement with an anonymous party to purchase its assets, which will allow the company to exit Chapter 11 debt free “with significant improvement in liquidity for the future stability of the business.” Terms of the agreement were not disclosed.



“We’ve given it a valiant effort over the past 12 months,” said Robert J. Riesbeck, Hhgregg's 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.”



The retailer's remaining 132 store locations will operate in the ordinary course of business throughout the restructuring process. The 88 stores slated for closing will wind down operations by mid-April, under the previously disclosed plan.



Hhgregg, which expects to emerge from Chapter 11 in approximately 60 days, said it remains “fully committed” to its 132 remaining stores.



“We have solidified our senior management team and everyone is dedicated to restructuring our business model for future profitability and growth,” continued Riesbeck. “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 has obtained a committed $80 million debtor-in-possession financing.



Hhgregg has been losing money for the past two years. It reported a 22.2% drop in same-store sales for its most recent quarter.