HHGregg Said to Prepare for Bankruptcy
HHGregg Inc., the 61-year-old retailer of appliances and electronics, is preparing to file for bankruptcy as it grapples with slumping sales, according to people familiar with the matter. The filing may come as soon as next month, said the people, who asked not to be identified because the matter isn’t public. The Indianapolis-based company announced last week that it was pursuing a range of strategic and financial options. HHGregg is still seeking an out-of-court solution that would allow it to stave off Chapter 11, one of the people said.
Total Retail's Take: HHGregg is the latest example of a store-based retailer being forced to file Chapter 11, joining Wet Seal and The Limited, which are going out of business for good. HHGregg has been challenged with declining sales for a few years now, and filing Chapter 11 may allow itself to reorganize and return in some capacity, although a smaller physical footprint may be in the offering.
Joe Keenan is the executive editor of Total Retail. Joe has more than 10 years experience covering the retail industry, and enjoys profiling innovative companies and people in the space.