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.
The news comes one day after the Indianapolis-based retailer announced that it was closing 88 stores and three distribution centers
The closure of 40 percent of the retailer’s stores will result in the elimination of about 1,500 jobs.
The 61-year-old retailer of appliances and electronics is preparing to file for bankruptcy as it grapples with an ongoing slump in sales, according to people familiar with the matter.
Indianapolis-based HHGregg Inc. is turning to investment banks “to pursue a range of potential strategic and financial transactions” as the struggling appliances and electronics retailer battles sinking sales.
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.
The New York Stock Exchange has notified HHGregg that the company’s stock price needs rise above avoid a delisting. Its market cap also needs a boost.
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.”
The retailer took a whopping loss of $58.3 million in the quarter, more than double the loss of $26.9 million it took in the third quarter of the previous year.
The company's shares took a dramatic tumble on Jan. 9, after it reported disastrous preliminary sales figures for the quarter ended Dec. 31.
HHGregg released preliminary sales results for its latest quarter Monday after the market closed. Shares fell 24 percent in after-hours trading, to $1 each, after closing at $1.31.
Aaron Trahan, 32, is the fifth person to hold this job since 2012 at the struggling Indianapolis-based retailer.
Three major Indianapolis-based retailers struggling with declining sales replaced their CEOs this year as they tried to improve company financials.
The Indianapolis-based appliance and electronics retailer suffered another money-losing quarter, though its strategy to focus more on appliances is making headway.
Keith Zimmerman had been with the struggling Indianapolis-based chain since December 2014. A senior executive said HHGregg has begun the search for a new chief merchandising officer who will "move a little faster" and bring greater creativity to the job.
"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.
Michael Andretti, owner of Andretti Autosport, has become a director following a sponsorship deal between the struggling retailer and the racing team.
Dennis May, who left HHGregg Inc. in February after nearly seven years as CEO of the retail chain, has a taken a new job at a health care company that has plans for regional growth.
The electronics and appliance retailer also announced more personnel moves, including the appointment of a new chief financial officer.
