HHGregg (Indianapolis) announced that it will be closing 88 of its weakest stores as well as three of its distribution centers. The closings will be completed by mid-April and will result in about 1500 layoffs. The store closings amount to about one quarter of its brick-and-mortar stores.
The news comes as the company’s same-store sales declined by 22.2 percent for the most recent fiscal quarter. The company has lost money for the past two years, and there are also rumors that the company may be planning to file for bankruptcy, reports IndyStar.
“We are strategically exiting markets and stores that are not financially profitable for us,” the company’s chief executive officer, Robert Riesbeck, said in a statement. “This is a proactive decision to streamline our store footprint in the markets where we have been, and will continue to be, important to our customers, vendor partners and communities."