hhgregg declares bankruptcy

INDIANAPOLIS, Ind. (NETWORK INDIANA): Days after the company announced plans to close nearly 100 stores, hhgregg says it has filed for bankruptcy.

In a press release distributed Tuesday morning, the electronics and appliance retailer announced it has filed for Chapter 11 bankruptcy and reached an agreement to sell the business to an unidentified buyer.

Declining to identify the buyer or the terms of the agreement, hhgregg said only that it has “signed a term sheet with an anonymous party to purchase the assets of the company.”

“We’ve given it a valiant effort over the past 12 months,” CEO Bob Riesbeck said in the press release. “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.”

Riesbeck said hhgregg’s new ownership is “fully committed” to operating the 132 stores that will remain after the company completes the closing of 88 stores and three distribution centers. The company announced the store closings last week.

Indiana Business Journal reports that hhgregg filed the Chapter 11 paperwork late Monday in the U.S. Bankruptcy Court in Indianapolis. Their assets and liabilities are estimated at between $100 million and $500 million, according to IBJ.

The Indy-based electronics and appliance retailer was founded by the Throgmartin family in 1955.

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