HHGregg Inc. is preparing to file for bankruptcy just over a week after the company hired a firm to help turn its financials around, according to reports.
Founded in 1995, the Indianapolis-based retailer with 229 brick-and-mortar retail stores in 20 states was earlier this month put on notice for potential delisting by the New York Stock Exchange due to its low stock price. In the most recent CE Pro analysis of public company stocks, HHGregg was the worst performer in 2016, moving from $3.66 per share at the beginning of 2016 to just $1.42/share at the end of the year. The stock is currently trading at just 27 cents per share.
The company uses independent contractors as its field installation force, many of whom are likely CE pros. HHGregg has stores in Alabama, Delaware, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Mississippi, Missouri, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, West Virginia and Wisconsin.
The typical new stores range from 25,000 to 30,000 square feet. The company carries approximately 350 models of major appliances, consumer electronics, computing and wireless products, home furniture, mattresses and fitness equipment.
According to Bloomberg, the company has lost money for the past two fiscal years and its holiday sales were down 24 percent. On February 15, the company hired a legal firm to help find ways to improve cash flow. It is reportedly trying to stave off Chapter 11 via an out-of-court solution.
Bloomberg quoted CEO Robert Riesbeck as saying, “We’re focused on continuing to execute our business strategy, as planned, and returning this company to profitability.”