Hastings Entertainment, which filed for bankruptcy last month, has gotten a short reprieve. At a July 6 hearing in its bankruptcy proceedings, the retailer recieved a short extension in the amount of time it has to find a buyer.
At the hearing, the retailer's creditors--which include Penguin Random House, Hachette and Ingram--argued that the given timetable does not give Hastings enough time to find a buyer. Originally, Hastings needed to have bids in by July 11, with a sale hearing to be held July 15. However, attorneys for the creditors’ committee and Hastings have now agreed to push the deadline for bids to July 18, with a sale hearing set for July 22. If any auction is necessary, it will take place July 20.
Christopher Samis, an attorneys for Hastings, told judge Kevin Carey that one company which had expressed interest in buying Hastings, and keeping it in business, was continuing to conduct due diligence. Samis said this potential bidder had a team of 11 at Hastings’ Amarillo, Tex. headquarters as late as last Friday.
But Samis also told judge Carey that Hastings was taking the necessary steps to prepare for its possible liquidation, should no bid for the company be made.
While Hastings was not asking the court to approve a stalking horse bid to sell the company’s inventory, Samis said the company "may very well request that in the future.” Samis noted that the bid would not only pay off the money to the owed Hastings's bank, but provide $3 million to $6 million to pay for other costs.
At the July 22 hearing, the judge will consider either the sale of Hastings, or a bid to liquidate its inventory.
Hastings and its parent company, Draw Another Circle, filed for bankruptcy June 13. At that time, they hoped to find a new buyer within 30 days. In the last two years, Hastings lost a total of $27.5 million as revenue continued to decline.
