Three companies controlled by NECA/WizKids owner Joel Weinshanker filed for bankruptcy protection today, according to the Wall Street Journal. The three companies are superstore retailer Hastings Entertainment (which issued a “plant closing” notice to its employees on Friday, see “Hastings Gives 375 HQ Employees ‘Plant Closing’ Notice”), sister company MovieStop (which the WSJ said was already in liquidation), and SP Images, a licensed sports merchandise company.
The reason for the filing was clear based on the numbers revealed: Hastings lost $10.9 million on sales of $420 million in 2014, and $16.6 million on $401 million in sales in 2015.
Liabilities included $80 million in secured debt and $59 in trade payables.
Hastings and MovieStop combined represented well over 160 stores very recently, although it’s unclear how far along the liquidation of MovieStop’s stores is (there were 42 at the time of acquisition in 2014).
The companies continue to operate and seek investors or acquirers. No DIP (debtor-in-possession) financing was reported by WSJ.