Hastings Entertainment has filed for Chapter 11 bankruptcy, pledging to remain open as it seeks a buyer and acknowledging it doesn’t have enough cash on hand to operate.
Hastings has 126 stores in medium-sized communities throughout the United States, including three in Boise, one in Meridian and one in Nampa.
“We are hopeful that a buyer interested in our long-term potential will come forward with an offer that unlocks the full, future value of our assets for the benefit of all of our stakeholders,” according to a statement this week by Hastings, which is based in Amarillo, Texas.
Some store functions are changing as Hastings readies for an acquisition. It will no longer accept customer deposits for future movie releases. It has asked the court to allow deposits already made to be applied toward other store purchases and for gift cards to be honored only through July 13.
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Game rentals have been suspended, as has a buyback program where Hastings purchased used books, music, movies, video games and electronics from customers.
The chain has been challenged by an increasing number of competitors and a sinking demand for in-store music, movies, books, games and rentals, which used to drive the majority of sales, according to the statement.
Aiming to reverse that trend, Hastings is emphasizing toys, electronics, comics and hobby supplies as it refurbishes 20 of its stores.
“We believe we are on the right path but need additional financial support to fully execute our plan for the future,” according to the statement. “That is why we have initiated a comprehensive process to evaluate potential buyers for our business.”
Chapter 11 bankruptcy will help prepare Hastings for a sale and provide additional protections and financing for operations, according to the company.
Sports Authority bankruptcy
A Sports Authority store at 1301 N. Milwaukee St. in Boise is closing in late July or early August.
The store will have a going-out-of-business sale until it closes, with markdowns over the next month or two.
The Boise Sports Authority has more than 20 employees, according to a staff member.
Colorado-based Sports Authority is going through bankruptcy proceedings. It failed to find a buyer and recently began closing all of its more than 450 stores.