HHGregg seeks to stop losses, but dropped by NYSE
The CEO of HHGregg Inc. said Wednesday he still aims to return the company to profitability even as its stock was delisted from the New York Stock Exchange and a report said bankruptcy is imminent.
The Indianapolis-based company, with 16 stores in Illinois, declined to comment on a Bloomberg report published last week that its bankruptcy could be filed in March.
"We're focused on continuing to execute our business strategy, as planned, and returning this company to profitability. We remain fully committed to serving our customers' needs," President and CEO Robert Riesbeck said through a spokeswoman.
On Feb. 15, the company hired a firm to search for strategic and financial deals that would help the company improve its liquidity and return to profitability. That action followed notices from the NYSE that HHGregg was not meeting its trading rules. The company was not in compliance because its average global market capitalization over a consecutive 30-day trading period was less than $50 million and, at the same time, its stockholders' equity was less than $50 million.
In January, HHGregg reported that its third fiscal quarter, ending Dec. 31, showed a net loss of about $58 million, compared to a loss of $26 million in the same period the year before. Sales also were down 23 percent.
HHGregg, founded in 1955, operates about 220 stores in 19 states. In Illinois, it has stores in Arlington Heights, Bloomingdale, Crystal Lake, Downers Grove, Geneva, Gurnee, Naperville, Niles, Schaumburg and elsewhere. Stores sell mobile phones, tablets and personal computers, along with an exclusive deal with Verizon Wireless. Other products include TVs, mattresses, washers, dryers and other appliances.
In February 2011, HHGregg entered the Chicago and suburban market with fanfare, announcing as many as 20 new stores and hiring of about 900 workers. It occupied many of the former Circuit City locations. It already had stiff competition from big-box home improvement stores selling appliances along with Best Buy and Fry's Electronics, known for its electronic devices.
By August 2016, the company closed five Wisconsin stores and one in Vernon Hills.