The president and CEO of Hastings Entertainment Inc., Jim Litwak, issued a statement Monday saying the company has initiated a comprehensive process to evaluate potential buyers for the business and, as part of that sale process, have filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code.
The filing will be in conjunction with Hastings corporate parent, Draw Another Circle, and sister brands Movie Stop and SPImages. In the release, Litwak said the Chapter 11 filing will help to prepare the business for its intended sale while providing additional protections and financing to allow the company to serve customers as usual.
The release went on to say that Hastings stores and online businesses will remain open and its passport program will continue with all accumulated benefits intact. He also promised that the company will launch exciting new promotions on an ongoing basis.
Litwak said that some programs will change in the interim as follows: Hastings 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; gift cards will expire on July 13, 30 days from Monday’s announcement; and Hastings’ buyback program has been suspended.
The prospective sale of the company is expected to be complete within the next 30 days, the release said.
As of today, the release said all stores will remain open saying, “All Hastings stores are opening as usual today. You should expect to find the same superior selection of multimedia and entertainment products with the same friendly and knowledgeable service.”