RIP HHGregg: After 60+ Years, the Retailer is Officially Closing its Doors
Well, that’s about all she wrote for major appliance and electronics retailer HHGregg.
In a rather large showing on its website over the weekend, the company essentially admitted defeat and announced it will go out of business. Liquidation sales began almost immediately at the remaining 220 stores, all of which are expected to close by the end of may, resulting in about 5,000 layoffs across the country.
In a statement, CEO Bob Riesbeck said that the company had continued to fight to find a potential buyer since the March 6th announcement that it had filed for Chapter 11 bankruptcy. However, “[w]hile 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,” he said.
This latest development comes a little more than a month after the company announced it would shutter more than 80 stores and three major distribution centers. At the time Riesbeck said he expected the bankruptcy process to last around 60 days and suggested that the company already had a potential buyer lined up.
The total shuttering of operations stings across the CE retail industry, but the writing was on the wall over the last few years for HHGregg. In the 2015 Dealerscope Top 101 CE Retailers list, the company reported total sales of $2.18 billion and CE-specific sales of $960 million. Those numbers dropped around 10 percent to $2 billion and $819.25 million respectively. The declines continued at a drastic rate in the latest Top 101 report published last month: total sales fell to $1.77 billion and CE sales reached only $578.5 million.
All that’s left at this point is a prime opportunity to score a huge deal on a big TV or major appliance.