hhgregg, Inc. (NYSE:HGG) Files An 8-K Costs Associated with Exit or Disposal Activities
Item 2.05.
|
Costs Associated with Exit or Disposal Activities
|
Company) approved a plan to close 88 stores to reallocate resources
to align more closely with its strategic goals to improve liquidity
and return to profitability. In connection with the store closures,
the Company plans to close one regional distribution center and two
local distribution centers which supported the closed store
locations.
closures on March 3, 2017 and to complete the closings by
mid-April 2017. In connection with these plans, the Company
expects to incur total pre-tax charges of approximately $12
million to $21 million. This estimate is comprised of
approximately $5 million to $10 million related to asset
impairment costs, $5 million to $7 million in employee
termination costs and $2 million to $4 million for other
associated costs. These charges are estimates, and the actual
charges may vary materially based on various factors, including
timing of the closures; actual associate terminations and
benefits; changes in managements assumptions and other plans; and
other factors. The Company also has approximately $190 million
outstanding for operating lease obligations relating to these
stores and distribution centers. As of the time of filing, the
Company is unable in good faith to make a determination of an
estimate or range of estimates related to the future cash
expenditures for these operating lease obligations as it does not
have reliable estimates of sublease income.
|
Item 2.06.
|
Material Impairments
|
close 88 stores and three distribution centers effective on March
3, 2017. These store and distribution center closings are
expected to result in non-cash charges of approximately $5
million to $10 million for impairment of the Company’s
long-lived assets associated with these stores and distribution
centers. To the extent required to be provided in this Item 2.06,
the information set forth in Item 2.05 of this Current Report on
Form 8-K is incorporated herein by reference.
|
Item 9.01.
|
Financial Statements and Exhibits
|
|
Exhibit No.
|
|
Description
|
|
|
99.1
|
|
Press release of hhgregg, Inc. dated March 2, 2017.
|
About hhgregg, Inc. (NYSE:HGG)
hhgregg, Inc. (hhgregg) is an appliance, electronics and furniture retailer. The Company operates as a multi-regional retailer with approximately 230 brick-and-mortar stores in 20 states that also offer global and local brands across the nation through hhgregg.com. It also sells a suite of services, including third-party premium service plans (PSPs), third-party in-home service and repair of its products, delivery and installation, and in-home repair and maintenance. The Company sells a range of appliances, audio products, computers, consumer electronics, mattresses and tablets. The Company sells appliances, including washers and dryers, refrigerators, cooking ranges, dishwashers, freezers and air conditioners; consumer electronics, including televisions, Blu-Ray and digital versatile disc (DVD) players, audio and small electronics; computers and tablets, including computers, computer accessories and tablets, and home products, including bedding and home furniture. hhgregg, Inc. (NYSE:HGG) Recent Trading Information
hhgregg, Inc. (NYSE:HGG) closed its last trading session 00.000 at 0.132 with 1,450,108 shares trading hands.
