Appliances and electronics retailer HHGregg and its Gregg Appliances unit filed for Chapter 11 bankruptcy protection on Monday, as the retail chains struggled with declining sales for about four years.
The company's 132 stores would operate normally throughout the restructuring process. HHGregg said last week that it plans to shut 88 stores and lay off about 1,500 employees. Fifteen of those stores are in Florida, but none in the Tampa Bay area will close. Nearby stores that will remain open include Clearwater, Brandon and Bradenton.
The bankruptcy action is the latest sign of the pressure on many retail chains facing online competition. The company also must compete with big-box rival Best Buy, which has gone through its own aggressive and painful cost-cutting efforts.
HHGregg, based in Indianapolis, said it expects to emerge from the bankruptcy process in about 60 days. It has been losing money for the past two years.
In a news release, HHGregg said it has agreed to sell its assets to an anonymous party, which will allow it to exit Chapter 11 "debt-free with significant improvement in liquidity for the future stability of the business."
Information from Times wires was used in this report.