hhgregg Bundle
Who Owns the Ghost of hhgregg?
The dramatic demise of hhgregg in 2017, marked by a complete store shutdown following bankruptcy, is a compelling case study in retail ownership. From family roots to a public listing and eventual online resurrection, the hhgregg SWOT Analysis reveals a fascinating journey. This exploration unravels the intricacies of the hhgregg company's ownership shifts and their impact on its fate.
Understanding the hhgregg owner's influence is crucial for grasping the hhgregg history and the decisions that led to its bankruptcy. This analysis examines the key players, from the founders to the final acquirers, providing insights into the hhgregg ownership structure. Discover the hhgregg current status and explore the strategic pivots that shaped the company's trajectory.
Who Founded hhgregg?
The story of the appliance and electronics retailer, began on April 15, 1955, in Princeton, Indiana. The company was founded by Henry Harold Gregg and Fansy Gregg, marking the start of what would become a significant player in the retail industry. The initial store was a modest 800-square-foot showroom in Indianapolis, focusing solely on appliances.
Early success was built on a foundation of customer service and a no-pressure sales approach, principles instilled by the founders. This customer-centric philosophy helped the business grow and establish a loyal customer base. The company's commitment to service set it apart from competitors and laid the groundwork for future expansion.
In 1971, the company expanded, opening two more stores. Following Henry Harold Gregg's passing in 1974, ownership transitioned to his wife, Fansy, and her stepsons, Gerald and Don Throgmartin. The Throgmartin family played a crucial role in the company's expansion from a single store into a regional chain. Jerry Throgmartin, Fansy's grandson, later became CEO in 1999.
Founding and Early Days
Founded in 1955 by Henry Harold Gregg and Fansy Gregg.
Initial Store
Started as an appliance-only store in Indianapolis.
Key Personnel
Gerald and Don Throgmartin joined in the 1960s, expanding the business.
Leadership Transition
Jerry Throgmartin became CEO in 1999.
Family Control
The Gregg and Throgmartin families maintained control for decades.
Expansion Strategy
Jerry Throgmartin led aggressive expansion efforts.
The family's long-term control and leadership were instrumental in shaping the company's growth trajectory. While specific ownership details of the early family members are not publicly available, the family's influence was evident throughout the company's history. To learn more about the business model and revenue streams, you can read about the Revenue Streams & Business Model of hhgregg.
Key Takeaways
The company's origins are rooted in a family-owned business model, with a strong emphasis on customer service.
- Founded in 1955 by Henry Harold Gregg and Fansy Gregg.
- Early expansion led by Gerald and Don Throgmartin.
- Jerry Throgmartin became CEO in 1999, driving significant growth.
- Family ownership and leadership were central to the company's strategy.
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How Has hhgregg’s Ownership Changed Over Time?
The journey of the hhgregg company from a family-run business to a publicly traded entity and ultimately, to its current form, reveals a complex evolution of ownership. Initially, the company was privately held, but it transitioned to the public market on July 20, 2007. The initial public offering (IPO) was priced at US$13.72 per share, trading on the New York Stock Exchange under the ticker symbol HGG. This move was influenced by Freeman Spogli & Co., a private equity firm, which, along with hhgregg's management team, acquired the company in 2005. The deal valued the company at approximately $307.2 million.
The company faced significant financial challenges, leading to its bankruptcy filing on March 6, 2017. Despite attempts to find a buyer, the company's Chapter 11 case was converted to Chapter 7 liquidation on April 7, 2017, resulting in the closure of all 220 stores. The hhgregg brand and intellectual property were then acquired by Valor Group LLC in June 2017 for $400,000. The acquisition marked a shift, with Valor Group LLC relaunching hhgregg as an online-only retailer in August 2017.
| Event | Date | Details |
|---|---|---|
| Private to Public | July 20, 2007 | IPO at $13.72 per share, NYSE: HGG |
| Freeman Spogli & Co. Acquisition | 2005 | Private equity firm acquired the company |
| Bankruptcy Filing | March 6, 2017 | Filed for Chapter 11, closed 88 locations |
| Liquidation | April 7, 2017 | Chapter 11 converted to Chapter 7, all stores closed |
| Valor Group LLC Acquisition | June 2017 | Purchased brand and IP for $400,000 |
Today, Valor Group LLC is the current owner of the hhgregg brand. However, detailed information about the internal ownership structure or major stakeholders within Valor Group LLC is not publicly available. The company's transition from a brick-and-mortar retailer to an online-only business model highlights the dynamic nature of the retail industry and the impact of financial challenges. For a deeper dive into the company's strategic moves, you can read about the Growth Strategy of hhgregg.
Key Takeaways on hhgregg Ownership
The ownership of hhgregg has seen significant changes, from private ownership to a public company and, finally, to its current online-only model under Valor Group LLC.
- Private equity played a role in the company's early public phase.
- Financial distress led to bankruptcy and liquidation of physical stores.
- Valor Group LLC acquired the brand and relaunched it online.
- Current ownership details of Valor Group LLC are not publicly disclosed.
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Who Sits on hhgregg’s Board?
Before its bankruptcy, the hhgregg company operated with a board of directors, common for publicly traded entities. This board comprised company executives, significant shareholders, and independent directors. Michael Andretti, known for his race team ownership, served as a director, and executives like Robert Riesbeck held key positions, including CEO. The board's composition and responsibilities were standard for a publicly listed corporation, overseeing governance and strategic decisions.
In the context of the former publicly traded company, common shareholders generally held one vote per share. This voting power allowed them to influence critical decisions, such as electing board members, approving mergers and acquisitions, and shaping other corporate policies. A quorum, typically requiring a majority of outstanding shares, was necessary for shareholder meetings. As of June 3, 2016, the company's definitive proxy statement indicated that 27,790,154 shares of common stock were outstanding and entitled to vote.
| Aspect | Details | Status |
|---|---|---|
| Ownership | Valor Group LLC | Private |
| Board of Directors | No publicly elected board | N/A |
| Decision-Making | Resides with Valor Group LLC management | Current |
Following the 2017 bankruptcy and acquisition, the hhgregg owner is now Valor Group LLC. The structure has shifted from a publicly traded model to a privately held online retailer. As a result, the traditional board of directors and widespread shareholder voting power are no longer applicable. Decision-making authority now rests with the ownership and management of Valor Group LLC. Eli Sapharti currently serves as the Director of Retail Operations for Valor Group LLC, managing the online business.
Ownership and Governance Changes
The hhgregg ownership structure fundamentally changed post-bankruptcy. The company transitioned from a publicly traded entity with a board of directors to a privately held online retailer under Valor Group LLC.
- Shareholder voting rights no longer exist in the same capacity.
- Decision-making authority is now concentrated within Valor Group LLC's management.
- Eli Sapharti oversees retail operations for the current online business.
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What Recent Changes Have Shaped hhgregg’s Ownership Landscape?
Since Valor Group LLC acquired the brand in 2017 for $400,000, the focus for the hhgregg company has mainly been on online retail. The company relaunched its website in August 2017. While there was an attempt to re-enter brick-and-mortar retail with a smaller store in New Jersey in September 2019, it closed in 2022. This shift highlights the evolving hhgregg business model in response to changing consumer preferences and the competitive landscape of the retail industry. The ownership transition reflects broader trends in the retail sector, especially the rise of e-commerce.
The former hhgregg headquarters in Indianapolis was sold to Citimark in December 2021 for $14 million. Citimark is redeveloping the 27-acre site into a 313,100-square-foot industrial park with an investment of approximately $30 million, aiming for full occupancy by 2025. This conversion underscores a significant transformation of the physical footprint once held by the retail giant. The changes in the hhgregg ownership reflect the broader shift in the retail landscape, where companies are adapting to survive in the face of e-commerce and changing consumer habits. To learn more about the company's past, check out Brief History of hhgregg.
| Aspect | Details | Year |
|---|---|---|
| Acquisition by Valor Group LLC | Brand and intellectual property acquired for $400,000 | 2017 |
| Website Relaunch | Online retail focus initiated | August 2017 |
| Brick-and-Mortar Attempt | Store opened in New Jersey | September 2019 |
| Store Closure | New Jersey store closed | 2022 |
| Headquarters Sale | Indianapolis headquarters sold to Citimark for $14 million | December 2021 |
| Redevelopment Project | Citimark investing $30 million in an industrial park | Ongoing, aiming for full occupancy by 2025 |
The retail industry's transformation, often termed the 'retail apocalypse,' has significantly impacted traditional brick-and-mortar stores. Factors like overexpansion, competition from online retailers, and a decline in consumer electronics sales contributed to the original demise of hhgregg stores. The current online-only model represents a strategic pivot towards digital platforms, reflecting a more agile business approach and departure from the large physical footprints that characterized its past operations. This also shows how the hhgregg owner has adapted to the market.
Who Owns hhgregg?
Valor Group LLC acquired the brand and intellectual property in 2017.
Current Status
Operates primarily as an online retailer.
Physical Presence
Limited physical presence, with a previous attempt at a brick-and-mortar store.
Future Plans
Focus on e-commerce, with no current plans for significant physical expansion.
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