Hastings Entertainment -- a retail chain selling books, music, video games and movies at 126 locations in various states, including in Ohio -- has announced that it is seeking potential buyers. The company recently filed for Chapter 11 bankruptcy, seeking protection while waiting for interested purchasers. It will keep the doors open for another 30 days in anticipation of an offer.
Chapter 11 bankruptcy is a tool that allows businesses that are experiencing significant financial problems to reorganize their finances while maintaining operations. The company hopes to find a buyer to take over and keep the business going. However, it said that failure to sell would force the closure of all 126 stores or corporate downsizing.
The substantial decline in the demand for physical copies of books, movies, games and music rather than those available online was cited as a primary reason for the Chapter 11 bankruptcy filing. The company announced how customers' deposits, gift cards and its buyback program will be handled during this time. It is not yet known what the fate of employees would be if a buyer is not found.
Chapter 11 bankruptcy is a complicated procedure that may be best navigated with the guidance of an experienced Ohio bankruptcy attorney. A lawyer will see that the process is navigated properly while also ensuring that the interests of the business owner are protected. A skilled attorney will be familiar with the practical aspects of businesses and can also handle all the necessary negotiations with creditors. A lawyer can assist in creating a workable reorganization plan to submit to the Bankruptcy Court for approval.
Source: amarillo.com, "It's official: Hastings Entertainment files for bankruptcy", Russel Anglin, June 13, 2016