A report filed by Hastings Entertainment to the Securities and Exchange Commission reveals the company predicted a dire future. In 2012, the report states the company considered selling itself when reorganization and eliminating executives didn’t stem the retailer’s downward spiral. The filing went on to say the steps didn’t have “sufficient impact” to predict the company would “return to profitability in the near future,” reported the Amarillo Globe-News.
SunTrust Robinson Humphrey was hired by the Amarillo-based company in June 2012 to evaluate the company’s strategic options, resulting in the board deciding to offer the chain to about 40 potential buyers.
Joel Weinshanker, a New Jersey merchandising mogul was the only buyer interested.
Hastings recently announced a deal with Weinshanker for $21.4 million, subject to shareholder approval.
The purchase will convert Hastings to a private business and cash out shareholder at $3 per share.
Two Hastings stockholders, Andreas Oberegger of London and David A. Capps of Tennessee, have asked a federal court to stop the retail chain’s proposed sale. In a lawsuit filed March 28 in U.S. District Court, the stock owners argue that the $3-per-share price is too low.
Details of the proposed buy-out can are available from the Amarillo Globe-News.