HHGregg Working to Avoid Bankruptcy
HHGregg says they are working hard to avoid bankruptcy, and instead they plan to close down 88 store locations and three distribution centers. This will lay off approximately 1,500 employees. The stores’ inventory and physical buildings will be sold over the next few weeks, and the company expects to finish the transition by mid-April.
A majority of the affected locations are in Florida, Pennsylvania, Maryland and Virginia. The soon-to-close distribution facilities are located in Miami, Florida; Brandywine, Maryland; and Philadelphia, Pennsylvania.
“We are strategically exiting markets and stores that are not financially profitable for us,” said CEO Robert J. Riesbeck.
The company will still operate in 132 locations, in addition to its efforts online.
This is the second round of layoffs for HHGregg this year. Last month, the company let go of 100 employees. Just a few days prior to this layoff announcement, the New York Stock Exchange delisted HHGregg because they no longer met the minimal listing requirement.