The economy continues to crush retailers big and small. Hastings, an outfit out of Texas that operates 126 stores, has filed for bankruptcy putting thousands of jobs at risk.If you’re unfamiliar with Hastings it wouldn’t surprise me. They are an outdated retailer that specializes in CD’s, DVD’s, movies, books, games and rentals, reminiscent of Sam Goody, Harmony House, Musicland and Blockbuster, all of which are extinct.
I think its time for a liquidation sale according to this Ada News report:
Hastings Entertainment filed Chapter 11 bankruptcy Monday, citing increasing numbers of competitors and the declining demand for physical media like music, movies, books, games and rentals.
In a press release posted on the company’s page, President and Chief Operating Officer Jim Litwak said the company needed additional financial support and had initiated a “comprehensive process to evaluate potential buyers for our business.”
Hastings’ corporate parent, Draw Another Circle, and sister brands Movie Stop and SPImages also have filed under Chapter 11, which will help the companies prepare for the possible sale while allowing them to continue operations, according to the release.
“Please be assured that Hastings stores and e-commerce businesses will remain open,” Litwak said in the release.
The Wall Street Journal reported Hastings’ debts included $80 million in loans, $59 million in trade bills, and in 2015, the company’s losses were $16.6 million on $401 million in revenue.
Stores will operate regularly, but some programs will undergo changes. Hastings will no longer accept or honor customer deposits for future movie purchases, but those deposits may be applied toward other purchases in the store; games will no longer be available for rent; gift cards will expire July 13; and the Hastings buyback program has been suspended.