Hastings files for bankruptcy

MOSES LAKE — Entertainment retail company Hastings has filed for bankruptcy.

Hastings operates 123 stores nationwide, in mostly medium-sized markets, including one in Moses Lake.

While some programs will remain in place, there will be a few changes. Wednesday will be the final day Hastings will accept gift certificates. The Hastings buy-back program has been suspended. Game rentals will no longer be available. Customer deposits will no longer be used on future movie purchases, but can be applied toward in-store purchases.

Hastings President and Chief Operating Officer Jim Litwak announced the company has voluntarily filed petitions under Chapter 11 of the United States Bankruptcy Code, along with corporate parent company Draw Another Circle and sister brands Movie Stop and SPImages. Litwak said the Chapter 11 process will help to prepare the business for the intended sale while providing additional protections and financing to allow the company to serve their customers, according to a statement on the Hastings website.

“We are hopeful that we are on the right path, but need an additional cash infusion to complete our remerchandising strategy,” said Litwak. “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.”

According to Rachel L. Rosenblatt, managing director, strategic communications, the United States Bankruptcy Court for the District of Delaware approved Hastings’ desired sale procedures and set July 20 as its auction date. Buyers will be required to submit qualified bids by Monday.

“While we previously planned to complete our sale process by July 13, this new deadline will afford interested buyers more time to come forward with offers that we hope will unlock the full, future value of our assets,” Rosenblatt said. Hastings retail locations remain open for business.