H. H. Gregg

H. H. Gregg was an American retailer of consumer electronics, home appliances, mattresses, and related services. The business began in Indiana in 1955 when Henry Harold Gregg and Fansy Gregg established a small appliance store. Its early assortment centered on washing machines, clothes dryers, refrigerators, grills, and other household equipment; televisions and additional electronics were added soon afterward. The company grew from a family business into a regional chain serving the Midwest, Southeast, and parts of the Northeast. The retailer’s stores sold home-entertainment products such as televisions, audio equipment, and home-theater systems, as well as computers and major appliances including refrigerators, ranges, dishwashers, freezers, washers, and dryers. A premium-appliance division called Fine Lines was introduced in 2004, with larger-format locations focused on higher-end products. H. H. Gregg generally positioned itself as a broad-assortment, service-oriented alternative to mass merchants and specialist electronics retailers, with particular emphasis on large-screen televisions, home theater, and higher-end appliances. Its slogan was “Gregg’s Got It!” and the company used an animated catalog mascot named HH in its marketing. The family connection remained important for much of the company’s expansion. Jerry W. Throgmartin, the founder’s grandson, joined the business as a child in 1975, held a succession of positions, and became chairman, chief executive officer, and a director in 1999. Under Throgmartin and later chief executive Dennis L. May, the chain expanded significantly. By October 2009 it had 125 stores in nine states. The company pursued growth in markets affected by Circuit City’s bankruptcy, opening or planning stores in former Circuit City and Linens ’n Things locations. Expansion reached Pennsylvania, Virginia, Florida, Tennessee, Maryland, Ohio, South Carolina, Illinois, Missouri, Wisconsin, and Louisiana, among other areas. The company also partnered with The Cellular Connection to introduce Verizon Wireless kiosks in selected stores. H. H. Gregg became a public company through an initial public offering in July 2007 and traded on the New York Stock Exchange under HGG. It reported fiscal-2016 revenue of approximately $1.96 billion, but the business faced intense competition, pressure on consumer-electronics margins, costly expansion, and changing retail behavior. The company announced closures of 88 unprofitable stores outside its core markets and explored strategic alternatives, including a possible sale. On March 6, 2017, H. H. Gregg filed for Chapter 11 bankruptcy protection. The reorganization attempt did not produce a completed sale, and the case was converted to Chapter 7 liquidation on April 7. The company announced that all 220 remaining locations would close and that approximately 5,000 employees would lose their jobs. Stores were permanently closed by May 25, 2017. The former company’s intellectual property was sold in June 2017 to Valor Group LLC for $400,000, with an online H. H. Gregg business subsequently launched from Somerset, New Jersey. That successor operation was not affiliated with the liquidated retail chain; a storefront opened in Franklin Township, New Jersey, in 2019 and was reported closed by 2022.

H. H. Gregg originated in Indiana in 1955, when Henry Harold Gregg and Fansy Gregg opened a small storefront selling household appliances. Washing machines, clothes dryers, refrigerators, and grills formed the initial assortment, followed by televisions and other electronics. The business developed as a family-operated retailer and gradually expanded its geographic reach and product range. Jerry W. Throgmartin, Henry Gregg’s grandson, began working in the store in 1975 while still in school. He moved through a variety of jobs in the organization and succeeded his father in 1999 as chairman, chief executive officer, and director of H. H. Gregg Appliances and Electronics. During the family-led growth period, the company concentrated on categories in which it believed it could compete through assortment and sales expertise, particularly large flat-panel televisions, home theater, and premium appliances. The company introduced Fine Lines on November 1, 2004. This division operated larger specialty locations devoted to premium appliance lines; the concept ultimately included fourteen locations, with product assortments varying by market. H. H. Gregg also became publicly traded through an initial public offering on July 20, 2007, and its shares traded on the New York Stock Exchange under HGG. That same year, it became one of the founding corporate partners of Lucas Oil Stadium in Indianapolis, receiving advertising rights and a showroom presence associated with the stadium’s south gate. Dennis L. May succeeded Throgmartin as president and chief executive officer in 2009, while Throgmartin became executive chairman. The retailer was operating 125 stores in nine states by October of that year and announced a plan for further expansion. The strategy took advantage of real-estate opportunities created by Circuit City’s bankruptcy, with H. H. Gregg opening stores in former Circuit City locations and, in some markets, former Linens ’n Things properties. New locations followed in Pennsylvania, Virginia, Florida, Tennessee, Maryland, Ohio, South Carolina, Illinois, Missouri, Wisconsin, and Louisiana. A partnership with The Cellular Connection also brought Verizon Wireless kiosks to selected stores. The expansion continued during 2011 and 2012, including entry into the Youngstown, Pittsburgh, Chicago, St. Louis, Wisconsin, and Louisiana markets. The Wisconsin operation was short-lived: all of its stores closed in 2016. The broader consumer-electronics market was becoming increasingly difficult, with online competition and declining margins on many technology products. The company continued to emphasize categories such as premium appliances and large-screen televisions, but its store base and cost structure became harder to sustain. Leadership changed materially in 2016. Dennis May resigned as chief executive officer, Robert Riesbeck became interim chief executive and was later appointed permanently, and subsequent management changes included the departures of Riesbeck, CIO Tom Schuetz, and Chief Merchandising Officer Aaron Trahan. Kevin Kovacs, previously chief financial officer, became chief executive officer and president in 2017. In early 2017, H. H. Gregg announced the closure of 88 unprofitable stores outside its core markets and began exploring strategic alternatives. It filed for Chapter 11 bankruptcy on March 6. A contemplated sale was not completed, and on April 7 the case was converted to Chapter 7 liquidation. The company announced that all 220 stores would close, including the 88 previously identified locations, and that approximately 5,000 employees would be laid off. The final stores closed on May 25, 2017. Trading in HGG was suspended in preparation for delisting; the shares were formally removed from the NYSE on March 27, 2017, and subsequently appeared on the OTC Pink market. In June 2017, Valor Group LLC purchased the H. H. Gregg brand and related intellectual property from the bankruptcy trustee for $400,000. Valor launched an online operation under the name in August, based in Somerset, New Jersey, but it was not affiliated with the former retail company. A physical store opened in Franklin Township, New Jersey, in 2019 and was reported to have closed by 2022. The original H. H. Gregg retail chain therefore remains defunct, while the brand name has had a separate post-liquidation commercial use.

• 2017

  Chapter 11 filing and Chapter 7 liquidation

  [1]H. H. Greggen.wikipedia.org

  The company files for Chapter 11 in March, converts to Chapter 7 in April, closes all stores by May, and ends its original retail operation.

• 2017

  Brand intellectual property changes ownership

  [1]H. H. Greggen.wikipedia.org

  Valor Group LLC acquires the H. H. Gregg brand and related intellectual property from the bankruptcy trustee.

• 2012

  Expansion reaches Wisconsin and Louisiana

  [1]H. H. Greggen.wikipedia.org

  The company opens several Wisconsin stores and enters Louisiana through locations in the New Orleans and Baton Rouge areas.

• 2009

  Regional expansion accelerates

  [1]H. H. Greggen.wikipedia.org

  The chain reaches 125 stores in nine states and announces additional expansion, including sites in former Circuit City properties.

• 2007

  Initial public offering

  [1]H. H. Greggen.wikipedia.org

  H. H. Gregg completes its initial public offering and begins trading on the New York Stock Exchange under HGG.

• 2004

  Fine Lines premium-appliance division launches

  [1]H. H. Greggen.wikipedia.org

  H. H. Gregg introduces a premium-format appliance division that eventually operates fourteen locations.

• 1999

  Jerry W. Throgmartin assumes senior leadership

  [1]H. H. Greggen.wikipedia.org

  The founder’s grandson becomes chairman, chief executive officer, and a director after progressing through many roles in the family business.

• 1955

  H. H. Gregg is founded in Indiana

  [1]H. H. Greggen.wikipedia.org

  Henry Harold Gregg and Fansy Gregg establish a small appliance store, initially selling household equipment before adding televisions and other electronics.

Regional, broad-assortment specialty retailer combining consumer electronics with major appliances, with an emphasis on large-screen television, home theater, premium appliances, and in-store service.

• Consumer electronics

  Televisions and home entertainment

  Televisions, especially large-screen flat-panel models, were central to H. H. Gregg’s consumer-electronics assortment. Stores also sold audio equipment and home-theater components, an area the company identified as one of its competitive strengths during the late-2000s expansion.

• Home appliances · 1955

  Major household appliances

  The retailer sold refrigerators, freezers, ranges, dishwashers, washing machines, clothes dryers, grills, and related household equipment. Appliances were part of the original 1955 assortment and remained a core business line through the company’s liquidation.

• Premium appliance retail · 2004

  Fine Lines

  Fine Lines was a premium-appliance division introduced in 2004. Its larger stores carried higher-end appliance lines, with brands and product selections differing by location. The division ultimately comprised fourteen stores.

• Consumer electronics

  Computers and selected electronics

  H. H. Gregg’s broader electronics range included computers and other selected technology products alongside televisions, audio equipment, and home-theater products.

• Home furnishings

  Mattresses

  Mattresses were included among the company’s selected home products, extending the store assortment beyond electronics and major appliances.

• 2016Andretti Autosport sponsorship

  United States

  H. H. Gregg sponsored Andretti Autosport drivers including Carlos Muñoz and Marco Andretti. The company was scheduled to become a full-time Andretti sponsor in 2017.

  Outcome. The sponsorship ended after the retailer’s liquidation; vehicle logos were removed, although company branding remained visible on some racing suits during the 2017 Indianapolis 500 period.

  Source
• 2007Lucas Oil Stadium founding corporate partnership

  Indianapolis · United States

  H. H. Gregg became one of fourteen founding corporate partners of Lucas Oil Stadium, home of the Indianapolis Colts. The arrangement provided advertising rights at the south gate and a showroom presence featuring large flat-panel televisions.

  Outcome. The sponsorship continued as a prominent Indianapolis-area brand presence during the company’s public-company period.

  Source

• 2017

  Closure of 88 unprofitable storesStrategy

  Background

  The company faced margin pressure, competition, and financial difficulties after years of expansion outside its strongest markets.

  Action taken

  H. H. Gregg announced that it would close 88 stores outside its core markets and began exploring strategic alternatives.

  Aftermath

  The action preceded the March 2017 Chapter 11 filing and did not prevent the eventual conversion of the bankruptcy case to Chapter 7.

  Source

• 2017

  Chapter 11 reorganization followed by liquidationOther

  Background

  A proposed sale or other strategic transaction was not completed, leaving the company without a successful restructuring path.

  Action taken

  H. H. Gregg filed for Chapter 11 on March 6, 2017. The case was converted to Chapter 7 on April 7, and management announced the closure of all 220 stores.

  Aftermath

  All stores closed by May 25, 2017, and approximately 5,000 employees were laid off. The original retail company ceased operations.

  Source

• 2017

  Sale of brand and intellectual property to Valor GroupM&A

  Background

  Following liquidation, the brand name and associated intellectual property remained assets of the bankruptcy estate.

  Action taken

  Valor Group LLC purchased the H. H. Gregg brand and intellectual property from the bankruptcy trustee for $400,000.

  Aftermath

  Valor launched a separate online business under the name in August 2017 and later opened a storefront in New Jersey.

  Brand and intellectual-property purchase price. $400,000 purchase transaction (June 2017)

  Source

• 2009

  Expansion into former Circuit City locationsStrategy

  Background

  Circuit City’s bankruptcy created vacant retail properties and a perceived opportunity for H. H. Gregg to broaden its geographic footprint.

  Action taken

  The company announced plans for 22 additional stores and opened or developed locations in former Circuit City and Linens ’n Things properties.

  Aftermath

  The strategy helped extend the chain into additional states, but the expanded store base later contributed to a difficult cost and profitability position.

  Source

1. 1H. H. Greggen.wikipedia.org