On March 29, 2017, consistent with ongoing discussions with the lenders under the Debtor-in-Possession Credit Agreement, dated as of March 6, 2017, among hhgregg, Inc. (the “Company”), Gregg Appliances, Inc., HHG Distributing, LLC (collectively, the “Debtors”), Wells Fargo Bank, National Association, as administrative and collateral agent, GACP Finance Co., LLC, as FILO agent, the Debtors executed a consulting agreement (the “Consulting Agreement”) with a contractual joint venture comprised of Tiger Capital Group, LLC and Great American Group, LLC (the “Consultant”) to conduct the sale of the merchandise located at the Company’s remaining retail stores and distribution centers and dispose of certain furnishings, trade fixtures, equipment and improvements to real property with respect to such stores and distribution centers. The Debtors have executed the Consulting Agreement as a precautionary measure in the event no acceptable going concern bids are received by the upcoming bid deadline of April 7, 2017.

The Consulting Agreement appoints Consultant as the Debtor’s exclusive agent for conducting a sale of merchandise in the Debtor’s 132 retail store locations and distribution centers and disposing of certain furnishings, trade fixtures, equipment and improvements to real property with respect to such stores and distribution centers. The sales shall commence on April 8, 2017 only to the extent that no acceptable going concern bids are received by the Company by April 7, 2017.

Payments to the Company and Consultant shall be made from the proceeds of the sales. to the Consulting Agreement, Consultant shall receive payment in an amount equal to 1.25% of gross proceeds for the sale of the merchandise. The Consulting Agreement contains customary representations, warranties, covenants and indemnities by the Company and the Consultant. The Consulting Agreement is subject to the approval of the United States Bankruptcy Court for the Southern District of Indiana (the “Bankruptcy Court”). A motion to approve the Consulting Agreement was filed with the Bankruptcy Court on March 30, 2017.

Based on the terms of the Consulting Agreement, the Company does not anticipate any value will remain from the bankruptcy estate for the holders of the Company’s common stock, although this will be determined in the continuing bankruptcy proceedings.

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 0.150 with 1,450,108 shares trading hands.