The parent company of Hastings has filed for Chapter 11 voluntary bankruptcy protection in a move to expedite the sale of the entertainment chain.
If no buyer comes forth, Hastings’ 126 stores — including its Hays location — could close.
“In the past six months, Hastings has made significant progress in transforming our stores into entertainment destinations with exciting new categories that appeal to every member of the family and also extend to our e-commerce business,” Jim Litwak, president and chief operating officer of Hastings, said in a news release. “We are hopeful that we are on the right path but need an additional cash infusion to complete our remerchandising strategy.”
The Amarillo, Texas-based company is hopeful a sale agreement will be reached, but also has a responsibility to prepare for all contingencies, Kevin Ball, vice president of marketing and advertising, said in a statement.
“As a result, we were obligated to formally notify our associates that, if a sale agreement cannot be achieved in a timely manner, we may need to begin downsizing our corporate office and/or closing the entire Hastings chain due to our continuing financial challenges,” Ball said.
Hastings sells new and used books, music, videos and video games.
The company was founded in 1968 in Amarillo. For many years it was a publicly traded company until 2014, when Draw Another Circle purchased it.
A post on the company’s website says:
• Hastings will no longer accept nor honor customer deposits for future movie purchases. Instead, existing deposits may be applied toward additional purchases in the store.
• Game rentals will no longer be available.
• Gift cards will expire July 13.
• Hastings’ buyback program has been suspended.