With rumors of a possible bankruptcy filing swirling, hhgregg has announced plans to shrink its store count as part of its turnaround efforts.
The company is moving forward with plans to close three distribution facilities and 88 store locations in order to reallocate resources to align more closely with its strategic goals to improve liquidity and return to profitability, officials with the retailer said.
“We are strategically exiting markets and stores that are not financially profitable for us,” said Robert Riesbeck, hhgregg’s president and CEO. “This is a proactive decision to streamline our store footprint in the markets where we have been, and will continue to be, important to our customers, vendor partners and communities. Our team is dedicated to moving forward and being a profitable 132 store, multi-regional chain where we will continue to be a dominant force in appliances, electronics and home furnishings.”
Current inventory in the affected stores will be sold over the coming weeks, with final closings expected to be complete by mid-April. The closings will result in the elimination of approximately 1,500 positions.
As a result of the store actions, hhgregg will close its distribution and delivery centers located in Brandywine, Maryland; Miami, Florida and Philadelphia, Pennsylvania. Store closures will impact locations in Ohio, Alabama, Georgia, Florida, Tennessee, North Carolina, Virginia, Pennsylvania, Maryland, New Jersey, Delaware, West Virginia, Illinois and Louisiana.
