main banner

Thursday, March 2, 2017

HHGregg store in Bailey's Crossroads will close

A typical HHGregg store.
The HHGregg store on Columbia Pike in Bailey’s Crossroads is among 88 stores nationwide that are closing as the company struggles financially. The closings, to be completed by mid-April, also affect HHGregg stores in Fairfax and Springfield.

“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.

11 comments:

  1. Another business leaving, build a Wegmans, now that would be smart growth.

    ReplyDelete
    Replies
    1. Are you aware that corporations choose store locations based on demographic profiles? This is why so many better stores will NEVER be in the area until the demographics change.

      Delete
    2. I'll cosign that! Unfortunately, big box retail is a thing of the past.

      Delete
    3. Are you all aware that the anti development attitude, lack of good mass transit, abundance of white vans, gang activity, litter, and illegals are scaring both residents and businesses away from this area.

      Delete
    4. If you're scared then move away. I'll stay. And when the development comes because everywhere else is developed I'll reap the rewards of living in a decent area. You can either chase the development all around NOVA and pay for it or sit tight and be patient.

      Delete
    5. You dont even need to be patient to reap the real estate rewards. Look at the average value of home sales in Mason over the past ten years...

      Delete
  2. Brew er y!, Brew er y!, Brew er y!...

    ReplyDelete
    Replies
    1. Yeah man, I'm all for it.

      Delete
    2. Turn it into a detention center for ms 13. The way things are going we may need to put an addition on this building.

      Delete
  3. I think every store in that shopping center is doing very well. They will find a suitable replacement for what used to be the circuit city building.

    ReplyDelete
  4. The demographics of the area are a challenge, in terms of flux, income, etc. Trader Joe's seems to be doing quite nicely, so there is hope...

    ReplyDelete