Hastings has confirmed that it’s seeking a buyer for the chain of 126 entertainment retail stores, but if one can’t be found, it will begin closing the entire chain due to “continuing financial challenges.”
The move comes less than two years after the family-owned business was sold for $21.4 million to Draw Another Circle, LLC, a Delaware-based merchandiser.
Kevin Ball, vice president of marketing and advertising, released a statement on the closures:
“Hastings has been working diligently to overcome our business challenges and we have made significant progress with a remerchandising strategy and other initiatives aimed at increasing profitability. 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. While we are hopeful a sale agreement will be reached, we also have a responsibility to prepare for all contingencies.
“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. Our management team believes there are a number of parties that would be interested in acquiring our brand, and we are doing everything possible to create a strong future for our business and for this great team.”
The company has 500 employees in Amarillo and operates 126 stores in medium-sized cities around the country, according to the Amarillo Chamber of Commerce.