Hastings Receives Bankruptcy Extension, Fate of Seguin Store Unknown

by San Antonio Attorney

After Hastings filed for bankruptcy last June 30, the company was given one week worth of extension to find another investor.

According to the official statement from Hastings, the process of selling the company is a part of their effort to put the business into longevity.  Fortunately, the United States Bankruptcy Court, District of Delaware approved their petition for sale and scheduled July 20 as the date of auction.

Interested buyers have a grace of submitting their qualifying bids until July 18.

The retailer said that the new deadline will entice more buyers with more lucrative offers with hopes that this will reveal the real value of their assets.

However, the retail locations of the company will maintain its operations and will expect that the stream of customers will remain the same.

Jim Litwak, the Chief Operations Officer of Hasting Entertainment, made a letter last June 13 to its customers saying that the company had suffered from financial struggles and have been searching for aid through a Chapter 11 Bankruptcy Code.

Litwak added that they truly believe that they are on the right track, but they still need more monetary support to implement better plans for the company.  Hastings has created a comprehensive procedure to grade interested buyers and file Chapter 11 Bankruptcy at the same time for parent companies such as Draw Another Circle, Movie Stop and SPImages.  This process helps Hastings Entertainment in preparation of a sale while still catering clients at the same time.

A lot of programs in Hastings have been changed due to insufficient funds maintaining them.  Game rentals are no longer available, gift cards and buyback programs are already invalid and customer deposits are no longer honored.  Litwak apologized to the customers for the inconvenience caused by the sudden transition of the company but promised that they will still serve for a longer time.

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