New Chapter 11 Filing - hhgregg Inc.
hhgregg Inc.
- 3/6/17 Recap: Indianapolis-based (and formerly publicly-traded - HGGG) brick-and-mortar retailer of appliances, consumer electronics, home products (read: all things that millennials don't buy) FINALLY filed for bankruptcy after an endless barrage of negative news stories, including reports of 88 store closures. The company's distress - brought on by trends afflicting the retail space generally and repeated to death in each and every retail bankruptcy filing, e.g., declining mall traffic, onerous leases, etc., - was exacerbated by its credit card program with Synchrony Bank and the need to post letters of credit to collateralize Synchrony's acquired receivables ($3mm paid, another $14mm owed). Note: there's a commentary here about consumer lending. The filing is intended to enable the company to continue with store closing sales and potentially find a buyer for its remaining locations.
- Jurisdiction: S.D. of Indiana
- Capital Structure: $300mm '21 credit facility ($56mm out)(Wells Fargo)
- Company Professionals:
- Legal: Morgan Lewis & Bockius LLP (Neil Herman, Rachel Jaffe Mauceri, Benjamin Cordiano, Katherine Lindsay, Matthew Ziegler, Michaela Dragalin) & (local) Ice Miller LLP (Jeffrey Hokanson, Sarah Fowler)
- Financial Advisor: Berkeley Research Group (Robert Duffy)
- Investment Banker: Stifel & Miller Buckfire & Co. (James Doak)
- Liquidators: Hilco Merchant Resources LLC (Ian Fredericks) and Gordon Brothers Retail Partners LLC (Michael Chartock)
- Legal: Kirkland & Ellis LLP (Patrick Nash, Bradley Weiland, Timothy Bow)
- Real Estate Advisor: Hilco Real Estate LLC (Ryan Lawlor)
- Asset Disposition Advisor: Malfitano Advisors LLC (Joseph Malfitano)
- Claims Agent: Donlin Recano (*click on company name for free docket)
- Other Parties in Interest:
- Agent for Prepetition Secured Lender & DIP Lender: Wells Fargo
- Legal: Choate Hall & Stewart LLP (John Ventola, Sean Monahan, Jonathan Marshall) & Faegre Baker Daniels LLP (Jay Jaffe, Terry Hall)
- Official Committee of Unsecured Creditors
- Legal: Cooley LLP (Cathy Hershcopf, Seth Van Aalten, Richelle Kalnit, Robert Winning, Melissa Boyd) & (local) Bingham Greenebaum Doll LLP (Whitney Mosby, Thomas Scherer, James Irving)
- Financial Advisor: Province Inc. (Stilian Morrison)
- Agent for Prepetition Secured Lender & DIP Lender: Wells Fargo
Updated 4/3/17