Great American Capital Partners Provides $30 Million to hhgregg, Inc. as part of Wells Fargo-led Financing

LOS ANGELES, March 23, 2017 -- Great American Capital Partners, LLC (“GACP”), a wholly owned subsidiary of B. Riley Financial Inc. (NASDAQ:RILY), and Wells Fargo Bank have entered into an agreement with hhgregg, Inc. (the “Company”) to provide a $80 million debtor-in possession (“DIP”) financing facility. Wells Fargo led the financing, which consists of a $50 million revolving credit facility provided by Wells Fargo and a $30 million term loan facility provided by GACP.

On March 6, 2017, the Company filed for Chapter 11 and the DIP facility. The DIP facility combined with the Company’s cash from operations is intended to provide sufficient liquidity during the Chapter 11 case to support its continuing normal business operations and minimize disruption.

“We have conducted an extensive review of alternatives and believe pursuing a restructuring through Chapter 11 is the best path forward to ensure hhgregg’s long-term success,” said Robert J. Riesbeck, hhgregg’s President and CEO. “Through strategic steps and our new banking partners, we plan to come out of this debt free and more agile as we serve our valued customers and vendor partners, and continue to be a dominant force in appliances, electronics and home furnishings.”

“Our industry experience and deep valuation expertise allowed us to execute this transaction on a very tight timeframe,” said Robert Louzan, Managing Director of GACP. “We are happy to partner with hhgregg’s management team and to play a role in facilitating their restructuring efforts.”

About hhgregg

hhgregg is an appliance, electronics and furniture retailer that is committed to providing customers with a truly differentiated purchase experience through superior customer service, knowledgeable sales associates and the highest quality product selections. Founded in 1955, hhgregg is a multi-regional retailer currently with 220 stores in 19 states that also offers market-leading global and local brands at value prices nationwide via hhgregg.com.

About Great American Capital Partners, LLC
GACP, a division of B. Riley Capital Management, an SEC Registered Investment Advisor and a wholly owned subsidiary of B. Riley Financial, Inc. (NASDAQ:RILY), originates and underwrites senior secured loans across a wide array of industries. GACP is dedicated to providing opportunistic and responsive capital to the underserved middle market.

B. Riley Financial, Inc. is a publicly traded, diversified financial services company which takes a collaborative approach to the capital raising and financial advisory needs of public and private companies and high net worth individuals. The Company operates through several wholly-owned subsidiaries, including B. Riley & Co., LLC (www.brileyco.com), Great American Group, LLC (www.greatamerican.com), and B. Riley Capital Management, LLC (which also includes B. Riley Asset Management (www.brileyam.com) and B. Riley Wealth Management, (www.brileywealth.com). The Company also makes proprietary investments in other businesses, such as the acquisition of United Online, Inc. (www.untd.com) in July 2016, where B. Riley Financial, Inc. is uniquely positioned to leverage its expertise and assets in order to maximize value.

Great American Capital Partners Contact:
John Ahn
[email protected] 
(310) 689-2215
Robert Louzan
[email protected] 
(203) 663-5101