Hastings Entertainment Files For Bankruptcy

Texas-based Hasting Entertainment has filed for Chapter 11 Bankruptcy. The company may be shuttering their stores, including their Las Cruces location.

Amarillo-based Hastings Entertainment voluntarily filed for Chapter 11 bankruptcy this week. Hasting's parent company Draw Another Circle is now looking for investors or a buyer to help out the company. Unless help is found, the company may be forced to close their 126 locations.

A press release came out late last week announcing the company's decision to file for bankruptcy,

“We are hopeful that we are on the right path but need an additional cash infusion to complete our remerchandising strategy,” said Jim Litwak, President and Chief Operating Officer of Hastings. “An asset sale to a well-capitalized purchaser would give us this financial stability and allow the buyer to pick and choose the assets it wants to acquire, while also disassociating us from the unique challenges facing our sister companies and creating new opportunities to generate long-term value for our creditors, associates, customers, suppliers and ultimately the communities we serve.”

Hastings has said that they believe there are "a number of parties" interested in the brand. Still, the companies financial troubles could lead to closing all of their locations.

If you haven't been to Hastings before, I highly suggest checking it out. The store has everything from movies, video games, electronics, books, comic toys and more.

Since the restructuring talks have begun, the company's website has informed customers that there are some changes happening at the store now.

* Hastings will no longer accept nor honor customer deposits for future movie purchases. Instead, existing deposits may be applied towards additional purchases in the store. 

* Game rentals will no longer be available. 

* Gift cards will expire on July 13, 30 days from today's announcement. 

* Hastings' buyback program has been suspended.