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HHGregg Cancels Sale Agreement; Talks with Other Potential Buyers
Furniture, appliance and electronics retailer HHGregg said it has terminated a previously announced agreement with an unnamed party that had offered to purchase substantially all of the assets of the company through its Chapter 11 bankruptcy reorganization.
The retailer said it was unable to reach a definitive agreement on terms of the sale, but said it has received "strong interest" from other entities who are interested in buying the company.
"We and our advisors continue to work with potential acquirors to help them understand our business model for future growth and our value proposition," said Robert Riesbeck, president and CEO.
He said the company has been given interim approval for $80 million in debtor-in-possession financing, and plans to continue to operate its remaining stores during the Chapter 11 proceedings.
Indianapolis-based HHGregg filed for bankrputcy protection March 6, just a few days after announcing it would close 88 of its 220 stores.