HHGregg is a popular East coast appliance and electronics retailer that continues to struggle in this very difficult economy. Founded in Indianapolis, Indiana in 1955, the company operates more than 200 stores in 19 states, selling mostly mobile phones, tablets, and PCs and exclusive deals with Verizon Wireless. They also sell consumer electronics like televisions and appliances as well as furniture and mattresses.
Now, though, the company has announced plans to close at least 88 underperforming stores, as well as three distribution centers and delivery centers in Brandywine, Maryland; Philadelphia, Pennsylvania; and Miami, Florida.
The stores will soon begin liquidation sales of its current inventory, with closures expected to come as soon as April. These closures will also result in the loss of approximately 1,500 jobs.
HHGregg CEO Robert Riesbeck notes, “We are strategically exiting markets and stores that are not financially profitable for us. 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.”
He goes on to say, of course: “I want to thank each and every manager and associate in our stores and distribution centers, and their families, for their continued efforts, contributions and support,” he continued. “I understand this is not an easy process to go through; our history has shown that our team members will meet this challenge head-on and continue to support our customers and each other through the closing process.”
Earlier this week, HHGregg’s stock was removed from the NYSE after the company’s “average global market capitalization over a consecutive 30 trading-day period” dropped to less than the $15 million threshold necessary to remain on the exchange. Sensing the pending closures, HHGregg did not appeal the removal decision.
The closures will effect stores in Ohio, Virginia, Alabama, Georgia, Florida, Maryland, Pennsylvania, Illinois, Missouri, North Carolina, West Virginia, New Jersey, Delaware, Louisiana, and Tennessee.
Riesback also comments, “We feel strongly that the markets we will remain in are the right ones for our customers and our business model. Our team is dedicated to moving forward and being a profitable 132 store, multiregional chain where we will continue to be a dominant force in appliances, electronics and home furnishings.”