Hastings’ Parent Company Files For Bankruptcy
East Texas' movie, music and book retailing icon Hastings could be closing their doors. Hastings parent company, Draw Another Circle based in Amarillo, filed for Chapter 11 bankruptcy protection yesterday (Monday, June 13, 2016) to protect the company as they seek a buyer or investor(s) for the company. According to Amarillo.com, the company will remain open for at least the next 30 days as the company seeks a buyer for all or some of their properties and locations. If they cannot find an interested party the company could end up closing all 126 Hastings and related branded stores.
In a press release from Draw Another Circle, President and Chief Operating Officer of Hastings, Jim Litwak says,
We are hopeful that we are on the right path but need an additional cash infusion to complete our remerchandising strategy. An asset sale to a well-capitalized purchaser would give us this financial stability and allow the buyer to pick and choose the assets it wants to acquire, while also disassociating us from the unique challenges facing our sister companies and creating new opportunities to generate long-term value for our creditors, associates, customers, suppliers and ultimately the communities we serve."
According to Hastings' website, Hastings has also suspended its buyback program, stores are no longer renting games or accepting deposits for movies and all gift cards would be expiring on July 13th.
Hastings operates 30 stores in Texas including stores at 4015 S. Broadway in Tyler, 4501 North Street in Nacogdoches, 2306 S Jeffferson Ave in Mt. Pleasant and 405 NW Loop 281 in Longview.