Bankruptcy for hhgregg
Indianapolis-based hhgregg announced filed for bankruptcy.
The petitions were filed in the U.S. Bankruptcy Court for the Southern District of Indiana.
The move just days after announcing a big round of store closings.
“We’ve given it a valiant effort over the past 12 months,” said Robert J. Riesbeck, hhgregg's President and CEO. “We have conducted an extensive review of alternatives and believe pursuing a restructuring through Chapter 11 is the best path forward to ensure hhgregg’s long-term success. We are thankful for the continued support of our dedicated employees, valued customers, vendors and business partners as we navigate this process, and look forward to becoming a stronger company in the coming months.”
The Company has signed a term sheet with an anonymous party to purchase the assets of the Company, which is intended to allow the Company to exit Chapter 11 debt free with significant improvement in liquidity for the future stability of the business. The Company expects a quick and smooth process through Chapter 11 with emergence in approximately 60 days.
“We have streamlined our store footprint and remain fully committed to the 132 remaining stores, and the associates supporting those locations. We have solidified our senior management team and everyone is dedicated to restructuring our business model for future profitability and growth,” continued Riesbeck. “Through these strategic steps, we plan to come out of this debt free and more agile as we serve our valued customers and vendor partners, and continue to be a dominant force in appliances, electronics and home furnishings.”
The retailer's 132 store locations will operate in the ordinary course of business throughout the restructuring process, the company says. The 88 stores affected by the Company’s announcement on March 3, 2017 will wind down operations by mid April, under the previously disclosed plan.
The company says it intends to continue:
• Providing superior delivery, installation and customer service;
• Providing wages, healthcare and other benefits to its associates without interruption; and
• Paying suppliers and vendors for the goods and services it receives in the ordinary course of business throughout the restructuring process.
The company has obtained a committed $80 million debtor-in-possession financing.
UFPI acquires hardwood manufacturer
An affiliate of Universal Forest Products, Inc. has acquired certain assets of Quality Hardwood Sales, LLC, a manufacturer and supplier of hardwood products based in Nappanee, Indiana.
Quality Hardwood Sales manufactures components for cabinets used in homes and recreational vehicles. It was founded in 2001, and had net sales of $30 million in 2016.
This will be Universal's first foray into hardwood products and will expand the Universal portfolio while providing Quality Hardwood with additional markets for its products and the opportunity to grow its customer base and product offering.
“Quality Hardwood has exceptional manufacturing expertise, a strong management team that’s staying on, and products that are known in the industry for their superiority. In addition, its leaders share our devotion to lasting customer relationships and to diversification and growth, and will be a great addition to the Universal family of companies,” said Universal CEO Matthew Missad.
A Universal Forest Products affiliate also closed on the purchase of a previously announced acquisition today: Robbins Manufacturing Co., a Tampa, Florida-based manufacturer of treated wood products with facilities in Florida, Georgia and North Carolina.