The 62-year-old company is joining the trash heap of failed appliance and electronics retailers, done in by a long list of problems—including overexpansion and a collapse in sales of consumer electronics.
The company did not disclose the identity of the purchaser. CEO Robert Riesbeck said HHGregg is “fully committed” to continuing to operate the 132 stores that will remain after it completes the closings announced last week of 88 stores.
Robert Riesbeck, appointed to the top job last year, says growth opportunities in appliances and furniture are sufficient to offset declines in the company's battered consumer electronics product line.
In a statement, CEO Robert Riesbeck said: "While decisions like this are never easy, we are taking the necessary steps to preserve and grow our business during the continued challenging retail environment.”
Three major Indianapolis-based retailers struggling with declining sales replaced their CEOs this year as they tried to improve company financials.
"It's time to stop the madness," said CEO Robert Riesbeck, who noted that the appliance chain wasn't seeing a huge spike in business on the holiday anyway.
Just two months into the job, HHGregg CEO Robert Riesbeck believes the struggling retailer “still has long-term viability.” He aims to boost results in part by doubling-down on appliances—a strategy that includes opening more locations of the super-premium Fine Lines chain.
Robert Riesbeck, the company’s chief financial officer, has served as the struggling retailer’s CEO on a temporary basis since February but wants the title to become permanent.
After all the turmoil, investors are eager for signs that interim CEO Robert Riesbeck is righting the ship.
