hhgregg going out of business

Customers wait in line at hhgregg off Shallowford road in 2008. The consumer electronics chain is going out of business and shutting down all its stores.

Consumer electronics chain hhgregg Inc. is going out of business and shutting down all its stores.

The Indianapolis company said Friday that it will liquidate its assets after failing to find a buyer for the business. It filed for bankruptcy protection in March.

Founded in 1955, the retailer had 220 stores in 19 states selling major appliances like washers and TVs, as well as computers and home theater systems.

In Chattanooga, hhgregg operates a 43,732 square foot store at 2565 Lifestyle Way in East Brainerd, which was built in 2008.

The bankrupt retailer began liquidating is assets Saturday after failing to find a buyer by its Friday deadline. No specific date was set yet to close the Chattanooga store, but all of the company' facilities and assets are to be liquidated by May 31.

The store closings are expected to result in about 5,000 layoffs across the U.S.

HHGregg CEO Bob Riesbeck in a statement said the company has "continued to fight for the future" since March 6 when it filed for Chapter 11 bankruptcy protection.

"While we had discussions with more than 50 private equity firms, strategic buyers and other investors, unfortunately, we were unsuccessful in our plan to secure a viable buyer of the business on a going-concern basis within the expedited timeline set by our creditors," Riesbeck said.

Just days before announcing its bankruptcy protection filing last month, hhgregg said it planned to trim down by closing three distribution centers and 88 stores. But the move was not enough to salvage the chain.

It is the latest brick-and-mortar chain to buckle under due to industry changes from the rise of online shopping. Amazon.com has eaten away at sales of almost every traditional retailer. Earlier this week, shoe chain Payless ShoeSource filed for bankruptcy protection.