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Hastings Entertainment

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For other uses, see Hastings (disambiguation).
Hastings Entertainment
Company typePrivate
IndustryEntertainment retail
FoundedAmarillo, Texas (1968)
FateChapter 11 bankruptcy
Headquarters
Amarillo, Texas
,
USA
ProductsBooks, magazines, CDs, DVDs, software, video games, boutique, accessories, coffee
RevenueIncrease$531,346,000 USD (2009)[1]
Increase$6,933,000 USD (2009)[1]
ParentDraw Another Circle
Websitehttp://www.gohastings.com/

Hastings Entertainment is a U.S. retail chain that sells books, movies, music, and video games. As of 2016 it had 126 superstores,[2] which are mainly located in the South Central United States, Rocky Mountain States, and in parts of the Great Plains and Midwestern states. Hastings Entertainment stores are also located in many college towns in the U.S. The company also rents movies and video games, and buys used books, movies, music and video games for resale. Hastings Entertainment is headquartered in Amarillo, Texas.

History

In 1968, the company was founded as a retailing division of Western Merchandisers, Inc., a books and music wholesaler. In 1990, Western Merchandisers became a subsidiary of Wal-Mart Stores, Inc.. In 1994, Wal-Mart sold Western Merchandisers to Anderson Media Corporation, and the former Western Merchandisers then operated as Anderson Merchandisers.[3]

In 2010, Hastings opened up a sports equipment retailer called Sun Adventure Sport in Amarillo and later added a store in Lubbock, Texas.[4] In August 2011, Hastings opened Tradesmart, a store in Littleton, Colorado, specializing in used electronics, media, and other trend[clarification needed] merchandise.[4]

Also in 2010, Hastings opened an account with Diamond Comic Distributors covering every store they operate, making Hastings the largest direct market comic book retailer in the United States. The comic sections of all stores were expanded in connection with the Diamond account.[5]

In 2013, Hastings redesigned its stores to emphasize toys, gifts, action figures, and licensed and branded products, which have higher profit margins, as sales of books, music, and videos declined.[6]

In 2012, after years of losses and with more losses projected in the future, the company's directors decided to shop the company to potential buyers.[6] In April 2014, Hastings agreed to be purchased by Draw Another Circle, LLC, a company controlled by merchandising executive Joel Weinshanker, for $21.4 million; another Weinshanker subsidiary had already owned 12.4 percent of Hastings. The buyout deal called for Hastings CEO John Marmaduke, son of the chain' founder Sam Marmaduke, to retire with a $1.5 million cash payment and for stockholders to be paid off at $3 a share.[6] The purchase was completed in July 2014.[7]

In November 2014, Draw Another Circle - which owned Hastings Entertainment - purchased MovieStop, a 44-store chain selling used movies and related merchandise.[8]

In June 2016, Hastings Entertainment filed for bankruptcy protection.[9] Hastings Entertainment was granted an extra week to find new investors but when they didn't have new investors on July 20th, 2016 then creditors (namely Bank of America) gave Hilco Merchant Resources LLC and Gordon Brothers Retail Partners LLC responsibility of liquidating Hastings stores.[10]

Controversies

On March 7, 2000, the company restated its earnings in the first three quarters of fiscal 1999.[11] On March 14, 2000, Hastings Entertainment, Inc. was sued for reporting profits of more than $12 million during the Class Period, while they used Hastings common stock to maintain false reports of the company's growth and profitability, by raising almost $40 million in an initial public offering.[12] Hastings paid $5.75 million for settlement.

References

  1. ^ a b Fiscal Year 2009 Annual Report. Retrieved 18 May 2007.
  2. ^ "About Us - goHastings". Retrieved 16 June 2016.
  3. ^ Bowser, David. "Local companies have broad reach". Amarillo Globe-News. 27 February 2005. Retrieved 18 May 2007.
  4. ^ a b Karen Smith Welch (21 September 2013). "Hastings concept stores gain traction". Amarillo Globe-News. Retrieved 8 September 2015.
  5. ^ Johnston, Rich. "Hastings – The First National Comic Store Chain In US?" Bleeding Cool. June 21, 2010.
  6. ^ a b c Karen Smith Welch (23 April 2014). "Report: Hastings saw bleak future". Amarillo Globe-News. Retrieved 8 September 2015.
  7. ^ "Hastings Entertainment, Inc. Announces Completion of Acquisition by an Affiliate of Joel Weinshanker". Marketwatch.com. PRNewswire. 15 July 2014. Retrieved 8 September 2015.
  8. ^ Erik Gruenwedel (3 November 2014). "MovieStop Acquired by Hastings Entertainment Owner". Home Media Magazine. Retrieved 8 September 2015.
  9. ^ Hastings Files for Bankruptcy; Seeks Buyer Publishers Weekly, June 13, 2016
  10. ^ [www.webcitation.org/6lE5x2YpC www.webcitation.org/6lE5x2YpC]. {{cite web}}: |archive-url= requires |archive-date= (help); Check |archiveurl= value (help); Missing or empty |title= (help)
  11. ^ "Hastings Entertainment Announces Non-Cash Accounting Adjustment and Fourth Quarter Charges".
  12. ^ "Hastings Entertainment, Inc".

Further reading

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