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Hastings Entertainment faces closure amid financial challenges

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Hastings Entertainment Inc., headquartered in Amarillo, is facing a full closure following what it is calling "business challenges."

According to a statement released by the company, unless it can be bought or an investor intercedes, it may need to downsize its corporate office and/or close the entire Hastings chain.

"To continue our transformation, we have initiated a comprehensive process to identify a buyer or investor that will give us the additional financial stability we need to move forward," the statement read.

Hastings said it has a responsibility for all contingencies and therefore is obligated to formally notify associates of a possible closure if a sale agreement isn't complete in a timely manner.

Even through the challenges, Hastings said it remains optimistic for the future.

"Our management team believes there are a number of parties that would be interested in acquiring our brand, and we are doing everything possible to create a strong future for our business and for this great team," the statement continued.

Bloomberg recently reported Hastings was preparing for a bankruptcy filing.

Hastings was founded in 1968 and describes itself as a "leading multimedia entertainment retailer." According to its website, it operates 126 superstores throughout the United States.

Hastings has been working diligently to overcome our business challenges and we have made significant progress with a remerchandising strategy and other initiatives aimed at increasing profitability. To continue our transformation, we have initiated a comprehensive process to identify a buyer or investor that will give us the additional financial stability we need to move forward. While we are hopeful a sale agreement will be reached, we also have a responsibility to prepare for all contingencies. As a result, we were obligated to formally notify our associates that, if a sale agreement cannot be achieved in a timely manner, we may need to begin downsizing our corporate office and/or closing the entire Hastings chain due to our continuing financial challenges. Our management team believes there are a number of parties that would be interested in acquiring our brand, and we are doing everything possible to create a strong future for our business and for this great team.

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