13 Investigates: Several bidders were interested in hhGregg
INDIANAPOLIS - hhGregg says 268 corporate employees will lose their jobs as the company closes its corporate headquarters in Indianapolis. The terminations are expected to begin May 31, according to an official noticed filed with the Indiana Department of Workforce Development Wednesday.
Those employees work at the retailer’s headquarters on 96th Street, just east of Keystone Avenue.
13 Investigates has learned that several bidders were interested in purchasing the company or parts of the company as late as last Friday morning, but that people close to the company say actions by the creditors cost the company those options.
When hhGregg filed for Chapter 11 bankruptcy protection on March 6, it said a anonymous bidder was interested in buying the company. Company officials said they would also entertain other offers submitted by an April 21 deadline. At the time, hhGregg said it hoped to emerge from bankruptcy in about 60 days.
However, creditors moved that bidding deadline two weeks earlier, to April 7, and several potential buyers dropped out, apparently unable to put together a deal in that shortened timeline.
On March 31, hhGregg announced it would go out of business if a buyer was not secured by the new April 7 deadline, the following Friday.
WTHR has learned that hhGregg leaders were reportedly talking to a potential buyer as early as that morning. That agreement involved keeping a number of stores open and saving nearly 1500 jobs. However, it appears creditors rejected that offer.
The afternoon of April 7, hhGregg announced it would begin the closing process with going out of business sales at its remaining stores starting the next day. In early March, the retailer had announced plans to close 88 stores.
The closing sales are expected to last five to six weeks, and closing is company completely is expected to take about eight weeks or so.
hhGregg began as a family-owned business in Indianapolis in 1955 and expanded to more than 200 stores across the Midwest and eastern part of the country. In 2007, the company went public. The New York Stock Exchange delisted hhGgregg earlier this year.