The retail apocalypse has officially descended on America

[Suzanimal]

HHGregg to close all stores after failing to find a buyer

INDIANAPOLIS — The going-out-of-business sales start this weekend at HHGregg.

The bankrupt retailer is planning to begin liquidating its assets Saturday after failing to find a buyer by its Friday deadline. The company expects to close all of its 220 stores by the end of May, resulting in about 5,000 layoffs across the U.S.

HHGregg CEO Bob Riesbeck in a statement said the company has "continued to fight for the future" since March 6 when it filed for Chapter 11 bankruptcy protection.

"While we had discussions with more than 50 private equity firms, strategic buyers and other investors, unfortunately, we were unsuccessful in our plan to secure a viable buyer of the business on a going-concern basis within the expedited timeline set by our creditors," Riesbeck said.

A company spokeswoman said Riesbeck was not available for an interview.

The liquidation process means HHGregg customers only have a few weeks left to use gift cards and return previously purchased items. Customers who want to make returns could end up being disappointed. The company, citing its bankruptcy process, is limiting returns on items bought before March 6 to $2,850 — a fraction of the cost of many high-ticket appliances and televisions.

The liquidation ends a 62-year run for HHGregg, which is headquartered on 96th Street. The company was founded by Henry Harold Gregg and his wife, Fansy.

CLOSING STORES IN 2017:Sears, J.C. Penney, Kmart, Macy's and more

HHGregg built a reputation as a regional electronics retailer, taking on companies such as Best Buy. But, like other big-box stores, HHGregg struggled to adapt to the e-commerce age. The store lost foot traffic and was slow to add features that online shoppers like, such as free shipping.

Riesbeck, who became CEO in February 2016 after Dennis May resigned, acknowledged he faced a difficult task. He described in an August interview how constantly changing technology has disrupted the company's business model.

"One thing HHGregg used to make their money on was those big-box TVs people had to have delivered," Riesbeck said. "And that's how HHGregg was built through the years. Once it went to flat panels, and all of a sudden people realized they could put them in the backseat of their car, delivery's not that important anymore."

Riesbeck attempted to divert HHGregg's focus from electronics to Fine Lines, an upscale store-within-a-store that sells appliances. HHGregg has become the seventh-largest appliance retailer in the U.S. behind Lowe's, Home Depot, Sears, Best Buy, Sears Hometown and Wal-Mart, according to the consumer electronics trade publication Twice.

Although the Fine Lines brand showed encouraging growth, it was not enough to make up for plummeting electronics sales. HHGregg lost money in each of the past two years. The company suffered through a brutal holiday shopping season last year, which accelerated its demise.

HHGregg this year has taken a series of drastic steps to stay afloat. The company in February said it would lay off 100 people, including 70 workers at its headquarters, and followed that up March 2 with an announcement that it would close 88 stores in 15 states. Those store closings, which have not yet been completed, would have brought the company down to 132 locations. HHGregg has a total of 220 stores in 19 states.

HHGregg warned a week ago that the end could be near. The company disclosed in a March 31 Securities and Exchange Commission filing that it would begin liquidating unless it found a buyer by Friday.

HHGregg has signed a consulting agreement with Tiger Capital Group and Great American Group to sell its merchandise, furniture, fixtures and equipment across all of its stores and 14 distribution centers. The bankruptcy is expected to wipe out the value of HHGregg's common stock.

As Riesbeck was working to reinvent HHGregg last year, he offered a blunt assessment of the company that could be considered its epitaph.

"I would say," he told IndyStar, "we're not unique in retail."

http://www.indystar.com/story/money/...yer/100183284/

[oyarde]

Learn something every day , I would have thought H. H. Gregg sold more appliances than Walmart . They were probably the place to buy appliances in Indianapolis . I never go to the city except the airport .

[opal]

Ya know.. I never heard of H. H. Gregg until a couple years ago.. still have not been in one. We have one (or had.. not sure now) where a toys-r-us used to be.
Our stove is acting up.. damn flat top stoves.. never liked them. Maybe I should do some speed research and go see what they have.

[Suzanimal]

Ya know.. I never heard of H. H. Gregg until a couple years ago.. still have not been in one. We have one (or had.. not sure now) where a toys-r-us used to be.
Our stove is acting up.. damn flat top stoves.. never liked them. Maybe I should do some speed research and go see what they have.

I got all my appliances there except my dishwasher. I have to admit, HH Gregg has great delivery and set up service. My washer and dryer were a pain in the ass and those guys were awesome. The guy Lowes sent to install my second dishwasher told me his life story. I found out his place had bedbugs.

[opal]

it took under 5 seconds for me to itch when I read bedbugs...

I looked at their website.. was not interested in any of their stoves

[oyarde]

Well , with Sears dying off , I would say that will just increase appliance sales a great deal around here at Home Depot , Menards and Lowes . Maybe an opportunity for someone to pick up a few shares of stock .

[jmdrake]

You could teach CPUd a thing or two.

Trump will pick a design for the wall using at least 90% recycled materials, just to piss off the left.

Sorta like how Obama pissed off the right by calling his socialist healthcare choices a "marketplace"

And he's going to use a Mexican company to piss off the right.

[devil21]

http://www.foxbusiness.com/features/...te-online.html

Yeah, online is growing but these articles make it sound like online now owns retail. The truth is that online transactions are still only about 10% of all retail transactions. Methinks the online excuse is just that, an excuse, to deflect from the simple fact that people don't have much money and they're not spending what they do still have.

[timosman]

Yeah, online is growing but these articles make it sound like online now owns retail. The truth is that online transactions are still only about 10% of all retail transactions. Methinks the online excuse is just that, an excuse, for the simple fact that people don't have much money and they're not spending what they do still have.

We need another bubble. MIC stocks!

[Suzanimal]

Yeah, online is growing but these articles make it sound like online now owns retail. The truth is that online transactions are still only about 10% of all retail transactions. Methinks the online excuse is just that, an excuse, to deflect from the simple fact that people don't have much money and they're not spending what they do still have.

I think it's a combination of both. Even though someone may not buy online, most folks shop around online to narrow down choices.

[oyarde]

Yeah, online is growing but these articles make it sound like online now owns retail. The truth is that online transactions are still only about 10% of all retail transactions. Methinks the online excuse is just that, an excuse, to deflect from the simple fact that people don't have much money and they're not spending what they do still have.

That is an interesting way to look at it . Considering only 6 in 10 work and only 3 of those make enough to pay Fed tax that means there are many, many broke ass people .

[devil21]

That is an interesting way to look at it . Considering only 6 in 10 work and only 3 of those make enough to pay Fed tax that means there are many, many broke ass people .

If it's from msm then it's banker propaganda and meant to deflect from their ongoing contraction of the money supply (deflation). Also to implant the idea that everybody else is now shopping online...so why aren't you? Can't say it enough that Amazon is a social engineering tool.

[RJ Liberty]

If it's from msm then it's banker propaganda and meant to deflect from their ongoing contraction of the money supply (deflation). Also to implant the idea that everybody else is now shopping online...so why aren't you? Can't say it enough that Amazon is a social engineering tool.

Yep. And a social engineering tool propped up by our own government and taxpayer money. I had to roll my eyes upthread at someone claiming Amazon is successful because they have "great product". The fact is, the CIA and the NSA have $600 million in contracts with Amazon.

[timosman]

Yep. And a social engineering tool propped up by our own government and taxpayer money. I had to roll my eyes upthread at someone claiming Amazon is successful because they have "great product". The fact is, the CIA and the NSA have $600 million in contracts with Amazon.

This is actually true of most of the high tech companies.

[RJ Liberty]

This is actually true of most of the high tech companies.

Yup.

[timosman]

Yup.

A sad realization of a software "engineer"

[devil21]

This is actually true of most of the high tech companies.

I've always assumed all of the mainstreamed high tech companies are CIA created and controlled, with fake backstories. From the bowels of DARPA, et al.

[timosman]

I've always assumed all of the mainstreamed high tech companies are CIA created and controlled, with fake backstories. From the bowels of DARPA, et al.

[kpitcher]

It is sad in a way . Pull into a town of 40k and no longer a Sears , Kmart , JC Pennies or a family owned hardware store . Save me money in the long run though , I do not really need anything and I do not shop online . The remainder of america will just buy all the cheap chinese crap they like online and I will mess around the farm.

Family owned hardwares have been closing up shop for decades already. My sister closed her store after a Home Depot moved in, after a Lowes had been around for a decade. Unless you're more than 15/20 miles from a box store, the hardwares that are left rarely sell any big ticket item and are scraping by. On top of that even the minimum yearly orders to be part of a chain have kept growing. Ace requires something like 250K yearly ordered from ACE, Tru-serve (True value / service star) was over 100K last I knew. I know I'm over a decade out of knowing what the current totals are, I'm sure it's higher.

Whirlpool pulled this with all the independent whirlpool appliance dealers back in the 90s. Minimum orders kept getting higher and higher so you'd have to be doing 10K, then 20K, then higher orders. It made it so keeping a current inventory became a very expensive proposition as you couldn't replace a few appliances as you sold them and instead would have to wait until you had a larger order. Smaller shops couldn't compete and appliance sales locations dried up outside of the box stores. That is why you mostly now only see appliances in Lowes, Home Depot, Sears, etc.

I know this should benefit the consumer in the end. However it does change the entire look and feel of a town when the downtowns are all empty.

[specsaregood]

Family owned hardwares have been closing up shop for decades already. My sister closed her store after a Home Depot moved in, after a Lowes had been around for a decade. Unless you're more than 15/20 miles from a box store, the hardwares that are left rarely sell any big ticket item and are scraping by. On top of that even the minimum yearly orders to be part of a chain have kept growing. Ace requires something like 250K yearly ordered from ACE, Tru-serve (True value / service star) was over 100K last I knew. I know I'm over a decade out of knowing what the current totals are, I'm sure it's higher.

WE have more than a couple of both lowes and home depots within 15/20 miles and yet new ACE hardwares have been opening up and old ones coming back in recent years. They are more conveniently located (right around neighborhoods) and I think people go to them when they just need some simple hardware type item and dont' feel like driving 15 minutes and walking a mile around the store to get it. Plus the employees are always right there to guide you to what you need in and out quickly. I think older people really like them. There are always customers in them when I've patronized them. Of course, about half the time they don't have what I need and I end up having to go to lowes anyways -- which is always disappointing -- but I can see why they have begun to restablish themselves in a special niche.

[Suzanimal]

WE have more than a couple of both lowes and home depots within 15/20 miles and yet new ACE hardwares have been opening up and old ones coming back in recent years. They are more conveniently located (right around neighborhoods) and I think people go to them when they just need some simple hardware type item and dont' feel like driving 15 minutes and walking a mile around the store to get it. Plus the employees are always right there to guide you to what you need in and out quickly. I think older people really like them. There are always customers in them when I've patronized them. Of course, about half the time they don't have what I need and I end up having to go to lowes anyways -- which is always disappointing -- but I can see why they have begun to restablish themselves in a special niche.

Our Ace is really busy and I love going there for specific things - screws (the old man back there can find any screw in a matter of seconds and he's always right there ready to help.) and reading glasses. Believe it or not, they have great reading glasses. My mom's eye doctor commented on how nice her reading glasses are and said he was going to suggest folks go to Ace for them. They're only 5.00 and they are really nice quality.

I also like Ace's shovels (usually on sale for 14.00 and they have a wide foot rest so you can jump on the shovel without hurting yourself. That comes in handy for me because I don't wear work boots and I have to jump on shovels to cut through the red clay around here. The same quality shovels start at around 25.00 at HD or Lowes. Plus, you get good coupons if you sign up for Ace Rewards. I just got a 10/20 or more regular priced item in the mail last week.

The Ace's intown have started reinventing themselves as garden centers. Not many plants but more high end lawn decor. I found some beautiful blown glass hummingbird feeders in the one near my parents old house.

[oyarde]

Our Ace is really busy and I love going there for specific things - screws (the old man back there can find any screw in a matter of seconds and he's always right there ready to help.) and reading glasses. Believe it or not, they have great reading glasses. My mom's eye doctor commented on how nice her reading glasses are and said he was going to suggest folks go to Ace for them. They're only 5.00 and they are really nice quality.

I also like Ace's shovels (usually on sale for 14.00 and they have a wide foot rest so you can jump on the shovel without hurting yourself. That comes in handy for me because I don't wear work boots and I have to jump on shovels to cut through the red clay around here. The same quality shovels start at around 25.00 at HD or Lowes. Plus, you get good coupons if you sign up for Ace Rewards. I just got a 10/20 or more regular priced item in the mail last week.

The Ace's intown have started reinventing themselves as garden centers. Not many plants but more high end lawn decor. I found some beautiful blown glass hummingbird feeders in the one near my parents old house.

We no longer have an Ace .I would probably use it if it was still here . A couple of muh kids live near Lafayette , Tenn and they have a nice one there . I stop in there sometimes when I visit . My Mother used to use the one here and I used the family owned independent hardware store here but they are both gone now so mostly I use Menards . I do buy power tools @ HD though because they match all of muh batteries . I too have noticed the very high long hand too prices ( shovels , pitchforks etc ) at the big chains . Ridiculous .

[AZJoe]

[tod evans]

Strip malls in the Ozarks are turning into Medicare/Medicaid siphons...

That and pawn shops.

[DamianTV]

http://www.zerohedge.com/news/2017-0...ail-apocalypse

[wizardwatson]

Apocalypse: You keep using that word. I do not think it means what you think it means.

[oyarde]

I used to buy a few things out of the Gander Mountain catalog on clearance back in the early 90's . They were much cheaper than Bass Pro , Cabelas etc . The same stuff I bought there was the kind of stuff I used to get on clearance at the Co Op , Sears , Wards etc . Most of it now I can just get @ Rural King when I am there .

[oyarde]

Marsh grocery has closed 25 stores in the past year . Will be closing 16 more within two months unless a buyer or business partner is found . Leaving only 28 stores remaining and no downtown grocers in Indianapolis .

[Son_of_Liberty90]

All hail Jeff Bezos and the Amazon AI overlords.

[Zippyjuan]

Somebody is filling up the retail space. Vacancies have been declining.