If you have a Hastings gift card, you might want to spend it now.
Hastings Entertainment, a Texas-based company that operates a Hastings store on Brooks Street in Missoula and five other stores in Montana, has filed for Chapter 11 bankruptcy.
Other Montana stores are located in Billings, Bozeman, Butte, Great Falls and Helena.
The parent company, Draw Another Circle, issued a statement Monday saying that it is in a 30-day sale process, meaning all stores will operate normally while the company evaluates offers from potential buyers.
The manager of the Missoula store said Tuesday she wasn’t authorized to comment, and a spokesperson in Washington, D.C., said the company will be “in a better position to discuss the future of the stores” after the 30-day sale process.
All Hastings gift cards will expire July 13. The stores will no longer honor customer deposits for future movie purchases and the buyback program has been suspended immediately. Game rentals are also no longer available.
“Hastings has been working diligently to overcome challenges to our business, including the increasing number of competitors as well as declining demand for physical media properties such as music, movies, books, games and rentals, which once drove the majority of our sales,” said a company news release.
“We have made significant progress with our re-merchandising strategy and with other initiatives aimed at increasing profitability; however, these challenges combined with the financial strain caused by the Movie Stop and SP Images acquisitions, weakened our balance sheet to a point where we do not have the necessary cash on hand to continue operating our businesses or refresh all of our stores on a timely basis without new sources of financing.”
SP Images distributes sports and entertainment products and is based in Massachusetts. MovieStop sells new and used movies and is currently liquidating its inventory.
The company was founded in 1968 as an entertainment retailer selling used books, videos, video games, CDs, apparel, consumer electronics and comics. There are currently 123 superstores across the country, including the one at 2501 Brooks Street, which also houses the Hardback Cafe.
According to property tax information, the building that houses the Hastings Superstore in Missoula is owned by a Canadian firm based in Richmond, British Columbia, called Choice Land Corporation. That company could not be reached for comment.