H. H. Gregg

HHGregg
Public company
Industry Retail
Fate Bankruptcy
Founded
Founders
  • Henry Harold Gregg
  • Fansy Gregg
Defunct May 25, 2017 (2017-05-25)
Headquarters Indianapolis, Indiana, U.S.
Number of locations
 227 (at its peak)
0 (June 2017)[1]
Key people
  • Cathy Langham
  • (Chairman of the Board)
  • Robert Riesbeck
  • (CEO)[2]
Products Retailing-Electronics and Appliances
Revenue Decrease US$ 1.96 B (FY 2016)[3]
IncreaseUS$ -51.73 M (FY 2016)[3]
Increase US$ -54.88 M (FY 2016)[3]
Total assets Decrease US$ 385.35 M (FY 2016)[3]
Number of employees
 3,723 (2016)
Website Archived official website at the Wayback Machine (archive index)

Gregg Appliances, Inc., branded as hhgregg, was an American publicly owned and operated retailer of consumer electronics and home appliances in the Midwest, Northeast, and Southeast United States, operating stores in 20 states including Alabama, Delaware, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland,[4] Mississippi, Missouri, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, and Virginia.[5]

Founded in Princeton, Indiana in 1955, HHGregg was headquartered in Indianapolis, Indiana. Its retail products included video products comprising televisions as well as DVD recorders; home appliances, such as refrigerators, ranges, dishwashers, freezers, washers, and dryers; and other products and services, including audio hardware, mattresses, computers, and other selected consumer electronics and accessories.[6] The company announced on November 24, 2008, that they would begin selling popular gaming systems such as Wii, Xbox 360 and PlayStation 3.[7]

HHGregg reported an annual revenue of US$ 1.96 billion in fiscal year 2016.

On March 6, 2017, HHGregg filed for Chapter 11 bankruptcy. The filing followed the decision to close 88 unprofitable locations outside of its core markets.[8] Troubles for HHGregg continued and it was announced on April 7, 2017, that it would also close all of its other stores (132 more than the 88 previously announced closures) in the coming months and would lay off about 5,000 people.[9]

History

An HHGregg retail store in Florida

In 1955, a small storefront was erected by Henry Harold and Fansy Gregg on the north side of Indianapolis. The new store featured home appliances such as washing machines, clothes dryers, refrigerators, and grills. Shortly thereafter, they began selling televisions and other electronics.

Map of hhgregg stores in the U.S. in August 2011

In 1975, Jerry W. Throgmartin began working in his grandfather's store while attending middle school. He eventually worked his way through many positions there over the next 24 years, and in 1999, took over his father's position as Chairman, CEO, and Director of HHGregg Appliances and Electronics.[10]

Dennis L. May succeeded Throgmartin as HHGregg's President and Chief Executive Officer on February 17, 2009, and Throgmartin was named Executive Chairman of the Board.[11] Throgmartin died in January 2012.[12]

Despite market trends that have diminished profit margins on high-tech devices, Throgmartin and May expanded the business to 125 stores in 9 states as of October 2009. Throgmartin said, "We've been fortunate in that the areas of the [overall CE] business that have been strong are the areas in which we excel: high-end large-screen flat-panel TVs and home theater, and higher-end appliances".[10]

On July 8, 2009, the company announced that it planned to open 22 stores in the following year, primarily in Richmond, Virginia, Tampa, Florida, and in Memphis, Tennessee, many of them being in buildings formerly occupied by defunct Circuit City, as part of an aggressive growth strategy to fill the gap created by Circuit City's bankruptcy.[13] In December 2009, construction began on several stores in the central and eastern parts of Pennsylvania, the first in the state. March 2010 brought the openings of the first stores in the Norfolk-Virginia Beach metro area, in converted Circuit City and Linens 'n Things locations. In Spring 2011, the company expanded into the Youngstown, Ohio market with the opening of a store in the Youngstown suburb Boardman.[14] Ten stores opened in July 2011 in South Florida along the east coast from Miami to West Palm Beach.

An HHGregg store in Hanover, Maryland; opened in 2010 in a former Circuit City location

In the fall of 2010, HHGregg opened several stores in former Circuit City locations in Maryland and Virginia.[15] Also, in late 2010, hhgregg partnered with The Cellular Connection, a cellular phone wholesaler based out of Indianapolis, to roll out kiosks to sell Verizon Wireless products

In March 2011, HHGregg announced it would open a new location in Myrtle Beach, South Carolina, also in the location of a defunct Circuit City.[16] In June 2011, HHGregg expanded into the Pittsburgh market with the opening of four stores in the Pittsburgh metropolitan area.[17] On September 15, 2011, 14 new stores opened in the Chicago area as well.[18] In September 2012, HHGregg opened four stores in the St. Louis, Missouri metropolitan area.[19]

In August 2012, HHGregg made its debut in Wisconsin by opening stores in Appleton, Brown Deer, Greenfield, Green Bay, and Racine.[20] In November 2012, it entered Louisiana with stores in the New Orleans metropolitan area and in Baton Rouge.[21][22]

The company's motto was "Gregg's Got It!"

In February 2016, May resigned as CEO, and Robert Riesbeck was named interim CEO.[13] In August 2016, Riesbeck was named the permanent CEO.[2]

Bankruptcy

On March 6, 2017, HHGregg filed for Chapter 11 bankruptcy. The filing followed the closure of 88 unprofitable locations outside of its core markets.[8] However, after failing to find a buyer after entering Chapter 11, the company announced on April 7, 2017, that it would close all 220 of its locations (the 88 stores previously announced to be closing, plus the other 132 locations) and lay off about 5,000 people, liquidating the company.[9] All stores were closed permanently on May 25, 2017.

Fine Lines

Fine Lines[23] was a division of HHGregg that was introduced November 1, 2004.[24] Each of its ten stores offered over 18,000 square feet (1,700 m2) of premium lines of appliances.[25] Products and brands vary by location. There were eleven Fine Lines locations.[26]

Stock

HHGregg had its initial public offering on July 20, 2007, at US$13.72 and is traded on the New York Stock Exchange under the ticker symbol HGG.[27]

On February 27, 2017, it was announced that the NYSE suspended trading of HGG in preparation for delisting.[28]

Sponsorships

On December 17, 2007, HHGregg signed as one of 14 founding corporate partners for the Lucas Oil Stadium, home of the NFL's Indianapolis Colts. HHGregg's deal earned them rights to advertise in the south gate and display many of their large, flat panel televisions.

The south gate is also home to a new 26,000-square-foot (2,400 m2) HHGregg showroom.[29]

From late 2016 to when the company closed, HHGregg sponsored several drivers on the Andretti Autosport team. They sponsored Carlos Muñoz and Marco Andretti. They were slated to become the full time sponsor of Andretti in 2017, and sponsored them at St. Petersburg. When the company closed, the team removed their logos on their cars, although the logo remained on the firesuits. When Takuma Sato won the 2017 Indianapolis 500, the company logos were still seen on the left breast of his firesuit though HHGregg had closed permanently three days prior to the race.

References

  1. ↑ "hhgregg Announces First Fiscal Quarter Operating Results" (Press release). Retrieved September 15, 2014.
  2. 1 2 Minaya, Ezequiel (August 1, 2016). "Hhgregg Names Robert Riesbeck Permanent CEO". The Wall Street Journal. Retrieved April 9, 2017.
  3. 1 2 3 4 HHGregg, Inc. (HGG) Income Statement via Wikinvest.
  4. ↑ "Electronics store hhgregg to open today in Hagerstown, Md.". PublicOpinionOnline. Retrieved 2010-04-26.
  5. ↑ "hhgregg Announces Grand Opening of Snellville, GA Store". hhgregg. Retrieved 2009-05-06.
  6. ↑ "hhgregg, Inc. (HGG:NYSE) Snapshot". BusinessWeek. Retrieved February 18, 2008.
  7. ↑ "hhgregg Launches Gaming Business Across Chain". hhgregg. November 24, 2008. Retrieved November 24, 2008.
  8. 1 2 "Electronics retailer hhgregg files for bankruptcy". Reuters. March 6, 2017. Retrieved April 8, 2017.
  9. 1 2 Briggs, James (April 7, 2017). "HHGregg to close all stores after failing to find a buyer". IndyStar. Retrieved April 8, 2017.
  10. 1 2 Brian Ploskina (January 2008). "A Commitment to Vision". Dealerscope. 50 (1). Archived from the original on March 22, 2008.
  11. ↑ "hhgregg Announces Executive Changes". hhgregg. Retrieved 2009-02-18.
  12. ↑ "hhgregg Announces Death of Jerry W. Throgmartin, Executive Chairman of the Board and Former Chief Executive Officer". hhgregg. January 23, 2012.
  13. 1 2 Hhgregg CEO Dennis May Resigns (Wall Street Journal)
  14. ↑ Luthern, Ashley. New Appliance Store Coming to Valley, Vindicator, 6 January 2011.
  15. ↑ "12 New Stores Opening Soon in Washington D.C. Area". Archived from the original on 2011-02-26.
  16. ↑ "Electronics store to hire 50 on Myrtle Beach Area". The Sun News -Myrtle Beach. Archived from the original on July 17, 2011.
  17. ↑
  18. ↑ "14 hhgregg stores to open in Chicago region on Sept. 15". Chicago Sun-Times. August 19, 2011. Archived from the original on February 3, 2013.
  19. ↑ "h.h.gregg Announces the Grand Opening of St. Louis, MO Area Stores". hhgregg. September 11, 2012.
  20. ↑ "h.h.gregg Announces the Grand Opening of Green Bay, WI Area Stores". hhgregg. September 18, 2012.
  21. ↑ "h.h.gregg Announces the Grand Opening of Two New Stores in New Orleans, Louisiana". hhgregg. November 13, 2012.
  22. ↑ "h.h.gregg Announces Grand Opening of Baton Rouge, Louisiana Store". hhgregg. November 13, 2012.
  23. ↑ "Fine Lines - Luxury Kitchen Applances". hhgregg Fine Lines.
  24. ↑ Lieber, Tammy. "Kitchens for the elite: H.H. Gregg goes upscale with Fine Lines appliance store". Indianapolis Business Journal. Retrieved 2008-01-04.
  25. ↑ "Product Selection". hhgregg Fine Lines. Retrieved January 4, 2008.
  26. ↑ "hhgregg Fine Lines Store Locator". hhgregg Fine Lines. Archived from the original on April 2, 2009. Retrieved January 4, 2008.
  27. ↑ "hhgregg Inc. Announces Pricing of IPO". Retrieved 2008-02-25.
  28. ↑ "Brief – NYSE to suspend trading immediately in Hhgregg Inc (HGG) and commence delisting proceedings". 27 February 2017 – via Reuters.
  29. ↑ "Hi-def highlights 'showroom' part of Lucas Oil sponsorship". The Indianapolis Star. Archived from the original on 2012-09-05. Retrieved 2008-02-25.

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