hhgregg and two subsidiaries filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of Indiana, lead case number 17-01302. The Company, which retails appliances, consumer electronics and furniture, is represented by Jeffrey A Hokanson of Ice Miller.
According to a corporate release, the restructuring is “intended to facilitate the Company’s long-term, strategic goals of enhancing profitability and reaffirming its commitment to its associates, vendors and the communities it serves.”
Robert J. Riesbeck, hhgregg’s president and C.E.O., comments, “We have streamlined our store footprint and remain fully committed to the 132 remaining stores, and the associates supporting those locations. We have solidified our senior management team and everyone is dedicated to restructuring our business model for future profitability and growth.”
The Company has signed a term sheet with an anonymous party to purchase the assets of the Company, which is intended to allow the Company to exit Chapter 11 debt free with significant improvement in liquidity for the future stability of the business. The Company expects a quick and smooth process through Chapter 11 with emergence in approximately 60 days.
hhgregg has obtained a committed $80 million debtor-in-possession financing facility underwritten by Wells Fargo Bank, National Association and GACP Finance Co. Subject to Court approval, this financing, combined with the acquiring party’s investment and the Company’s cash from operations, is expected to provide sufficient liquidity during the Chapter 11 case to support its continuing normal business operations and minimize disruption.
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