HHGregg to liquidate, close all stores

cathandler
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HHGregg to liquidate, close all stores

Post by cathandler » February 16th, 2017, 8:52 am

The slumping appliance and home electronics chain also faces delisting; its stock is trading at only 43 cents a share
http://www.twice.com/news/retail/hhgregg-play/64349

*Edited the subject line to reflect liquidation
Last edited by cathandler on April 7th, 2017, 9:08 pm, edited 1 time in total.

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Re: HHGregg looking at strategic alternatives

Post by pseudo3d » February 16th, 2017, 8:55 am

Yeah, whatever happened to them? After Circuit City's demise, they were being discussed as expanding their product lines and filling Circuit City's void (both in a physical sense and in a "competitor to Best Buy" sense)

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Re: HHGregg looking at strategic alternatives

Post by wnetmacman » February 16th, 2017, 9:59 am

I don't find this as a massive surprise. I've only been in one of their stores, and it was quite mediocre as an electronics and appliances chain. Sears had a better, more rounded selection than they do.

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Re: HHGregg looking at strategic alternatives

Post by buckguy » February 16th, 2017, 11:36 am

I'm surprised they're still in business. They seem to be the last survivor of the old regional electronics chains like Highland, Fretter, et al.---they never made it national. Haven't been to one of their stores recently, but they always seemed to have less breadth than other chains. That might have been a strength in the past (better inventory control) but now it may be a liability with so much competition from different sectors (e.g., Home Depot, Lowes's for appliances) and Best Buy now has more range than in the past.

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Re: HHGregg looking at strategic alternatives

Post by Andrew T. » February 16th, 2017, 7:45 pm

I hadn't even heard of HHGregg until they swooped in and scooped up the leases of some bygone Circuit City stores half a decade ago. If Circuit City couldn't stay in business with these store locations, why did HHGregg think it could in places where they lacked any sort of competitive niche, name recognition, or positive reputation?
AT

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Re: HHGregg looking at strategic alternatives

Post by pseudo3d » February 16th, 2017, 8:50 pm

Andrew T. wrote:I hadn't even heard of HHGregg until they swooped in and scooped up the leases of some bygone Circuit City stores half a decade ago. If Circuit City couldn't stay in business with these store locations, why did HHGregg think it could in places where they lacked any sort of competitive niche, name recognition, or positive reputation?
Many of the store locations weren't bad, Circuit City built stores up until their death, in fact, a handful were built and never opened. What killed Circuit City was their cost-cutting over the years (like replacing knowledgeable salespeople with hourly wages) and trying to become too much like Best Buy (in all the wrong ways).

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Re: HHGregg looking at strategic alternatives

Post by cathandler » February 16th, 2017, 9:13 pm

pseudo3d wrote:
Andrew T. wrote:I hadn't even heard of HHGregg until they swooped in and scooped up the leases of some bygone Circuit City stores half a decade ago. If Circuit City couldn't stay in business with these store locations, why did HHGregg think it could in places where they lacked any sort of competitive niche, name recognition, or positive reputation?
Many of the store locations weren't bad, Circuit City built stores up until their death, in fact, a handful were built and never opened. What killed Circuit City was their cost-cutting over the years (like replacing knowledgeable salespeople with hourly wages) and trying to become too much like Best Buy (in all the wrong ways).
It could be argued that getting rid of appliances and doubling down on electronics helped kill Circuit City as well. The consumer electronics business is quite cyclical; if there's no new hot product out there to stimulate consumer spending a specialty chain can get in trouble in a hurry. Ultimate Electronics didn't make that mistake, but they over-expanded (like HHGregg) and quickly paid the price. In fact, they made the over-expansion mistake twice.
Last edited by cathandler on February 27th, 2017, 2:18 pm, edited 1 time in total.

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Re: HHGregg looking at strategic alternatives

Post by mbz321 » February 16th, 2017, 9:18 pm

Another comment to add just to say 'not surprised'. They've been in the Philadelphia area for several years now (some in old Circuit City stores, some in other closed up stores like CompUSA) and I have had no reason to venture into one. (Although to be fair, I've probably only been in a Best Buy twice in the last 10 years). I know lately they have been trying to push other stuff like furniture and mattresses (seems like every store is doing this nowadays, and not usually a good sign). In fact, if you go to their website, the whole main page is covered in furniture sale ads.

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Re: HHGregg looking at strategic alternatives

Post by cathandler » February 27th, 2017, 2:19 pm

Trading in HHGregg stock has been halted amid widespread reports that a bankruptcy filing is imminent.
http://www.twice.com/news/retail/nyse-s ... tock/64431

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Re: HHGregg looking at strategic alternatives

Post by wnetmacman » March 2nd, 2017, 11:56 am

So 40% of the chain is closing:

HHGregg to close 88 stores and 3 DCs

Not the bankruptcy that we've been discussing, but change is afoot.

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