Troubled electronics retailer HHGregg Inc. has approved a plan to close 88 of its 220 stores, including one in Chesterfield, according to a filing Thursday with the Securities and Exchange Commission.
The Chesterfield store, situated at 17397 Chesterfield-Airport Road, is one of four HHGreggs in the St. Louis area. The Fairview Heights, Fenton and St. Peters stores are not affected by the closings, according to the company’s filing.
The chain also is closing six stores in northern and central Illinois — in Schaumburg, Bloomingdale, Arlington Heights, Niles, Springfield and Champaign.
Distribution and delivery centers in Miami, Philadelphia and Brandywine, Md., will be shuttered, the company said.
Current inventory in the stores will be sold in coming weeks, with store closings expected to be complete by mid-April, the retailer said in the filing.
Approximately 1,500 jobs will be cut, the company said.
The chain has been looking for an out-of-court solution to prevent a bankruptcy filing, according to news reports.
A particularly weak holiday sales period for the retailer, marked by a 24 percent drop in revenue in the period ended Dec. 31, pushed the retailer to the brink.
On Feb. 15, it hired Stifel, Nicolaus & Co. and Miller Buckfire & Co. to help find ways to improve liquidity and stem the red ink, prompting speculation that it might file for bankruptcy protection this month. The store closings announced Thursday appear to be a move to avoid that.
In a statement, HHGregg President and CEO Robert J. Riesbeck called the closings a “proactive decision to streamline our store footprint in the markets where we have been, and will continue to be, important to our customers, vendor partners and communities.”