The eCommerce takeover is having quite the impact on brick-and-mortar stores around the world. With retailers filing Chapter 11 bankruptcy left and right, including stores like the Limited and Wet Seal, some are finding it hard to compete on the same level as the online world of instant gratification-fueled buying and delivery.
The latest brick-and-mortar retailer to fall victim to the eCommerce wrath is rumored to be appliance and electronics store HHGregg. With over 60 years in business, this business is figuring out what its next best step is due to stumbling-down sales. The best case scenario that HHGregg is looking at is an out-of-court settlement to help avoid a Chapter 11 bankruptcy filing.
After losing money over the course of the past two years, it’s possible that HHGregg will see either a Chapter 11 filing or an out-of-court settlement as soon as next month. Q4 proved to be a difficult period for HHGregg, as sales took a 24 percent dive. The company’s CEO, Robert Riesbeck, who declined to comment on the potential bankruptcy, highlighted HHGregg’s recent hiring of Stifel, Nicolaus & Co. and Miller Buckfire & Co., which will hopefully help keep them in the black. He said, “We’re focused on continuing to execute our business strategy, as planned, and returning this company to profitability.”
The New York Stock Exchange put HHGregg on notice in early February as it was failing to meet the minimum requirement for listing price. If it continues to miss this requisite, the company will be in danger of becoming a delisted entity.
With big-box stores like JCPenney’s recent announcement about closing 140 of its stores, many brick-and-mortar stores are likely to see an evolution over the next few years. Whether it’s shuttering dozens of locations to focus solely on the eCommerce aspect of the business or a combination of the two, we’re sure to see retailers taking a multitiered approach over the next few years.