A month after filing for bankruptcy and outlining a plan to find a buyer for its 123 stores, Hastings Entertainment announced it will instead close all of its stores and liquidate its assets.
Hastings announced the liquidation plan on Wednesday following an auction sale of its assets, Billboard reports.
Hilco Merchant Resources LLC and Gordon Brothers Retail Partners LLC partnered to purchase Hastings, quickly announcing plans to “oversee the liquidation of assets.”
“On Friday July 22, the bankruptcy court is expected to approve our agreement with the companies who oversee our store closing sales,” a spokesperson for Hastings tells Billboard.
Under the plan, Hilco and Gordon Brothers must give employees of Hastings a seven-day notice before the stores close, and all locations are to be cleared out by Oct. 31. However, they could be closed sooner, depending on the “going-out-of-business sales the two companies plan to begin.
Billboard reports that Hastings, and its parent company Draw Another Circle, approached 60 retail chains about purchasing the company. Only one company, Bull Moose — a New England-based chain — showed interest.
It’s unclear what happened to that bid, Billboard reports, noting that Bull Moose reportedly asked for another week to come up with financing. While the bankruptcy court granted the extension if the retail could put down a down payment, that never materialized.
Hastings — along with its parent company Draw Another Circle and sister brands, Movie Stop and SPImages — filed for Chapter 11 bankruptcy protection in June.
Hastings, which typically operates in college towns in the Midwest and South Central U.S., had hoped to find a buyer for its 126 stores within 30 days.
Hastings Entertainment Shutting Down All Stores for Liquidation [Billboard]
by Ashlee Kieler via Consumerist
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