hhgregg store to close following bankruptcy

Kate Croxton/Douglas County Sentinel

The outside of the Douglasville hhgregg store is covered in signs proclaiming that the store is closing and going out of business. A city official said the store is expected to close for good in May.

The outside of the Douglasville hhgregg store is covered in signs proclaiming that the store is closing and going out of business.

hhgregg announced on April 7 that the United States Bankruptcy Court for the Southern District of Indiana approved the company's initiation of the process to liquidate the assets of the company, according to a press release issued by the company. The liquidation commenced on April 8, meaning that a sale of the merchandise and furniture, fixtures and equipment located at the retail stores and distribution centers will take place.

The store, located at 6967 Concourse Pkwy. in Douglasville, will soon shut down along with all hhgregg locations across the country. Until then, the entire store is facing 10 to 30 percent off sales on the original prices of all merchandise. All sales are considered final.

"Since filing for financial protection under Chapter 11 of the Bankruptcy code on March 6, 2017, we have continued to fight for the future of our company," said Bob Riesbeck, the president and CEO for hhgregg in the press release. "While we had discussions with more than 50 private equity firms, strategic buyers and other investors, unfortunately, we were unsuccessful in our plan to secure a viable buyer of the business on a going-concern basis within the expedited timeline set by out creditors. We have, however, received and accepted a big for liquidation of our assests. This process will begin Saturday, April 8, 2017."

According to the press release, the company does not anticipate any value will remain from the bankruptcy estate for the holders of the company's common stock, although this will be determined in the continuing bankruptcy proceedings.

Douglasville Director of Community and Development Services Jonathan Lynn explained that the store will close some time in May.

"It will leave a large and empty storefront needing to be filled," Lynn said.

Hhgregg, an appliance, electronics and furniture retailer, was founded in 1955 and currently holds 220 stores in 19 states. The company also offered market-leading global and local brands at value prices nationwide via their website hhgregg.com.

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