(Gillette, Wyo.) Entertainment superstore Hastings has officially filed for bankruptcy. The company began the process on Monday and hopes to find a buyer by mid-July. According to Q2 News
the company has come onto hard times following declining sales and a
shrinking market for physical media.
Hastings Entertainment Inc. currently has $80 million in secured loans and
$59 million in trade bills. They operate 126 stores, three in Wyoming -- in
Laramie, Rock Springs, and here in Gillette. We do not yet know if any
stores will close as a result of the action.
Hastings posted a message on its website
from the company's president and COO, Jim Litwak.
"We believe we are on the right path, but we need additional financial
support to fully execute our plan for the future," the letter read. "That
is why we have initiated a comprehensive process to evaluate potential
buyers for our business and, as part of that sale process, have filed
voluntary petitions under Chapter 11 of the United States Bankruptcy Code
along with our corporate parent (Draw Another Circle) and sister brands
(Movie Stop and SPImages)."
The statement goes on to assure customers that Hastings stores and
e-commerce businesses will remain operational for the time being. The
company's loyalty program, Passport, is also continuing.
- They will no longer accept nor honor customer deposits for future
movie purchases. Instead, existing deposits may be applied towards
additional purchases in the store.
- Game rentals will no longer be available.
- All gift cards will expire on July 13th.
- Hastings' buyback program has been suspended.