INDIANAPOLIS (WISH) – HHGregg officially filed for bankruptcy on Monday. The company made the announcement Tuesday morning.
According to a release, the decision was made in order to move forward “as a stronger, debt free and customer-focused business.”
“We’ve given it a valiant effort over the past 12 months,” said Robert J. Riesbeck, hhgregg’s President and CEO. “We have conducted an extensive review of alternatives and believe pursuing a restructuring through Chapter 11 is the best path forward to ensure hhgregg’s long-term success. We are thankful for the continued support of our dedicated employees, valued customers, vendors and business partners as we navigate this process, and look forward to becoming a stronger company in the coming months.”
The electronics and appliance retailer, which is based in Indianapolis, said last week that it planned to close 88 stores. The retailers says it’s remaining stores will still be open throughout the bankruptcy.
HHGregg is expected to emerge from the process in about 60 days.
“We have streamlined our store footprint and remain fully committed to the 132 remaining stores, and the associates supporting those locations. We have solidified our senior management team and everyone is dedicated to restructuring our business model for future profitability and growth,” continued Riesbeck. “Through these strategic steps, we plan to come out of this debt free and more agile as we serve our valued customers and vendor partners, and continue to be a dominant force in appliances, electronics and home furnishings.”
HHGregg says it will continue to do the following during the bankruptcy process:
- Provide delievery, installation and customer serivce
- Provide wages, healthcare and other benefits to its employees
- Paying suppliers and vendors for the goods and services it receives