|A typical HHGregg store.|
“We are strategically exiting markets and stores that are not financially profitable for us,” said Robert Riesbeck, president and CEO of the appliance and electronics retailer, in a statement released March 2. The closings, which will result in the elimination of approximately 1,500 positions, are aimed at improving liquidity and returning the company to profitability.
The stores that are shutting down are underperforming and are in locations “that are no longer strong shopping destinations due to changes in the local retail shopping landscape,” the company states. After the closings, 132 stores will remain open.
According to Bloomberg, the company is preparing to file for bankruptcy due to slumping sales as more customers shift to e-commerce. Revenues dropped 24 percent for the quarter ending Dec. 31 due to particularly weak holiday sales.
The company doesn’t know the exact closing date for each store, said HHGregg spokesperson Chantal Kowalski. “The stores will remain open until current inventory is sold, which we expect will be complete within the next five to six weeks. Discounts will tend to increase over the coming weeks.”
The company is not able to offer severance packages to employees, Kowalski said. Employees are encouraged to apply for openings at stores not targeted for closure. The Bailey’s Crossroads store has approximately 14 employees.
This article was updated March 6.