All Hastings Stores Will Close Unless Buyer Found, Executives Say

Hastings is seeking a buyer for its chain of 126 entertainment stores. According to Amarillo Globe News, if a buyer cannot be found, the company will close the entire chain of stores due to “continuing financial challenges.”

When San Angelo LIVE! spoke to a manager of the local San Angelo store, however, he said that he did not know of any potential Hastings closures.

This development in Hastings’s history has occurred less than two years after the Marmaduke family-owned business was sold for $21.4 million to Draw Another Circle.

Kevin Ball, vice president of marketing and advertising, released a statement on the potential 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 [who] 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.”

According to News Channel 10’s website, Hastings President and COO Jim Litwak stated in a letter to all employees, "We need an additional cash infusion to move forward with our plans for the future."

Furthermore, Litwak wrote, "While the company remains committed to securing potential buyers or investors, the company will proceed with a mass layoff or plant closing absent any such intervening events."

The company also announced “a number of initiatives, including launching a new store model in 20 locations, which are already showing improved performance, making our company more attractive for our customers, current owners and potential investors, and optimizing our overall cost structure.”