Hastings Stores May Close as Company Files Chapter 11 Bankruptcy
Amarillo-based Hastings may shutter all 126 of its stores, including two in Lubbock, if the company can't locate additional investors or a buyer.
A press release from Draw Another Circle, Hasting's parent, outlines the company's decision to voluntarily file for Chapter 11 bankruptcy.
"We are hopeful that we are on the right path but need an additional cash infusion to complete our remerchandising strategy," said Jim Litwak, President and Chief Operating Officer of Hastings. "An asset sale to a well-capitalized purchaser would give us this financial stability and allow the buyer to pick and choose the assets it wants to acquire, while also disassociating us from the unique challenges facing our sister companies and creating new opportunities to generate long-term value for our creditors, associates, customers, suppliers and ultimately the communities we serve."
In a previous statement, the retailer said its current financial troubles could either lead to a restructuring of its corporate office or the shuttering of its entire roster of stores -- or possibly both.
According to KVII in Amarillo, the statement from Hastings read in part: "To continue our transformation, we have initiated a comprehensive process to identify a buyer or investor that will give us the additional financial stability we need to move forward."
Hastings added that its management team believes "a number of parties" are interested in the brand.
Earlier this month, Bloomberg reported that the retail chain would file for bankruptcy this month.
Hastings sells movies, video games, electronics, books, comics and novelty gifts, to name a few. It was founded in 1968.