Unable to find a buyer, entertainment retailer to close all stores

Hastings Entertainment is going out of business.



The company, founded in 1968, filed Chapter 11 in June, with the hopes of finding a buyer, but none materialized. On June 20, Hilco Merchant Resources and Gordon Brothers Group bought the company to oversee liquidation of the stores in a contractual joint venture. The partners started going-out-of-business sales at all Hastings locations on Saturday, July 23.



"Our hope was that the Chapter 11 process would help to prepare our business for the intended sale while also providing additional protections and financing to allow us to serve our customers as usual,” said Jim Litwak, president & COO, Hastings Entertainment. “Unfortunately, this process was unsuccessful.”



Hastings operates 123 superstores, averaging approximately 24,000 sq. ft., primarily in medium-sized markets. Its debts include about $80 million in secured loans and $59 million in trade bills, according to theWall Street Journal. In 2015, it lost $16.6 million on $401 million in revenue.