HHGregg

HHGregg's 2017 liquidation ended a regional electronics and appliance retailer that had operated for 60 years across the Midwest and Southeast. The company tried to differentiate through appliance focus as electronics became commoditized but couldn't execute the pivot before cash ran out. The mechanism failure was timing—the company recognized the need to shift from electronics to appliances but couldn't make the transition fast enough. Electronics margins were collapsing due to Amazon and Best Buy competition; appliances offered better margins but required different store formats, salesforce skills, and vendor relationships. HHGregg was caught in transition—no longer competitive in electronics, not yet viable in appliances. The company's debt structure (from a 2007 private equity buyout) reduced flexibility during the transition. Debt service consumed resources that could have funded store remodeling, inventory shifts, and marketing. When electronics revenue declined faster than appliance revenue grew, the company hit a cash crisis. Liquidation sales drew crowds for electronics discounts while demonstrating the problem: customers came for cheap TVs, not for the appliance business HHGregg was trying to build.