Just two weeks after the New York Stock Exchange notified the company that it was not in compliance with listing rules, hhgregg announced that it engaged Stifel, Nicolaus & Co. and Miller Buckfire & Co., subsidiaries of Stifel Financial Corp., to pursue a range of potential strategic and financial transactions to improve liquidity and return to profitability.
“We are committed to improving our results through our business strategy, including investments made to shift our focus to appliances and furniture, and additional expected cost reductions,” said Robert Riesbeck, hhgregg’s president and CEO. “We believe it is an appropriate time to explore potential strategic transactions. As the company undertakes this exploration process, we are focused on the execution of our business strategy and remain fully committed to serving our customers’ needs.”
The retailer engaged Stifel Nicolaus and Miller Buckfire as its financial advisor and investment banker. The company, working with its advisers, plans to proceed in a timely and orderly manner, but has not set a definitive timetable for completion of this process. In addition, hhgregg asserted that it did not intend to disclose developments or provide updates on the progress or status of the strategic review process unless it deems further disclosure is appropriate or required.
According to the retailer, a New York Stock Exchange letter stated that hhgregg is not in compliance with Rule 802.01B, which is a continued listing criteria, because its average global market capitalization over a consecutive 30 trading-day period was less than $50 million and, at the same time, its stockholders’ equity was less than $50 million.