(Reuters) - Appliances and electronics retailer hhgregg Inc is preparing to file for bankruptcy as soon as next month, Bloomberg reported.
Indianapolis-based hhgregg’s shares slumped as much as 40.8 percent to 23 cents on Friday. The company’s stock has lost more than three-fourths of its value in the last 12 months.
The retailer is still seeking an out-of-court solution that would help it prevent filing a Chapter 11, Bloomberg reported, citing people familiar with the matter. (bloom.bg/2kS4j3E)
“We’re focused on continuing to execute our business strategy, as planned, and returning this company to profitability,” Chief Executive Robert Riesbeck wrote in an email to Reuters, adding that he had no other comment to offer at this time.
Hhgregg’s sales have fallen for 14 quarters in a row as it struggles to cope with intense competition.
The company said on Feb. 15 it would pursue a range of strategic alternatives.
Reporting by Gayathree Ganesan in Bengaluru; Editing by Savio D'Souza and Martina D'Couto