Bankrupt Hhgregg Inc.’s proposed purchase by an anonymous buyer has collapsed.
The appliance and electronics retailer filed Chapter 11 on March 6, 2017, saying that it had reached an agreement to sell the business to an undisclosed party. But late last week Hhgregg said it “terminated its previously announced nonbinding term sheet with an anonymous party to purchase substantially all of the assets of the company through a reorganization under Chapter 11,” due to a failure “to reach a definitive agreement on terms”.
The retailer said it has received interest from other possible buyers.
"We have received strong interest from third parties interested in buying some or all of the company's assets," stated Robert J. Riesbeck, Hhgregg's president and CEO, Hhgregg. "We and our advisors continue to work with potential acquirers to help them understand our business model for future growth and our value proposition."
The company has obtained interim approval of its $80 million debtor-in-possession loan facility to fund operations of the business during the sale process. Hhgregg said it will continue to operate in the ordinary course of business throughout the restructuring process. It still anticipated exiting Chapter 11 in early May.
The retailer currently operates 220 stores in 19 states.