Retail

HHGregg Takes Actions To Backpedal Bankruptcy Rumors

As we reported last week, rumors were circling appliance and electronics company HHGregg regarding a potential Chapter 11 bankruptcy filing.

Although the eCommerce world is having a solid impact on brick-and-mortar retailers, HHGregg is taking actions to help turn itself around. In a press release this week, the company announced major plans to help pull itself out of trouble.

To help refocus its efforts on the customer experience in-store and online, HHGregg is planning to close three distribution facilities and 88 stores.

In a statement, HHGregg’s president and CEO, Robert J. Riesbeck, details why these actions were necessary. He said, “We are strategically exiting markets and stores that are not financially profitable for us. This is a proactive decision to streamline our store footprint in the markets where we have been, and will continue to be, important to our customers, vendor partners and communities. We feel strongly that the markets we will remain in are the right ones for our customers and our business model. Our team is dedicated to moving forward and being a profitable 132-store, multiregional chain where we will continue to be a dominant force in appliances, electronics and home furnishings.”

Over the next few weeks, the company’s inventory from the closing stores will be sold and final closings should wrap up within the next month and a half.

Riesbeck went on to say, “I want to thank each and every manager and associate in our stores and distribution centers, and their families, for their continued efforts, contributions and support. I understand this is not an easy process to go through; our history has shown that our team members will meet this challenge head on and continue to support our customers and each other through the closing process.”

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