Hastings Entertainment

Hastings Entertainment

Company type	Public (until 2016)
Industry	Retail (entertainment, books, music, collectibles)
Founded	1968 (1968)
Defunct	2016 (2016)
Fate	Bankruptcy and liquidation
Headquarters	Amarillo , United States
Area served	South Central United States, Rocky Mountain States, Great Plains, Midwest
Key people	Jim Litwak (President and CEO, 2015–2016), John Marmaduke (former CEO)
Products	Books, music, video rentals, collectibles, comic books, toys, consumer electronics, musical instruments, disc golf equipment, skateboards, licensed merchandise
Owner	Draw Another Circle LLC (2014–2016)
Number of employees	3850 (2016)

Hastings Entertainment (often referred to simply as Hastings) was a U.S.-based entertainment retail chain with its main office located in Amarillo, Texas. By 2016, the company managed 123 large-format stores predominantly situated throughout the South Central United States, Rocky Mountain States, and portions of the Great Plains and Midwestern areas, including numerous outlets in college towns.

While many video rental businesses such as Blockbuster Video and Hollywood Video shuttered, Hastings endured the market shift. During the 2010s, it realigned its operations toward collectibles and comic books, ultimately becoming the nation’s largest comic book retailer. Although this strategic redirection initially fostered expansion, an earlier choice from the 1990s to lease store locations instead of purchasing them restricted the accumulation of valuable assets.

In 2014, Draw Another Circle LLC, a merchandising company, purchased Hastings for $21.4 million (~$ in ). Following this acquisition, the company accumulated $140 million in liabilities. To manage this financial strain, Jim Litwak—renowned for steering Macy's and Trans World Entertainment away from bankruptcy—was appointed as President and CEO in December 2015. Despite these leadership changes and attempts to stabilize the business, Hastings ultimately shut down all operations by October 2016.

History

Established in 1968 as West Texas News, the enterprise began as a newsstand operator before becoming part of Western Merchandisers, Inc., a wholesaler specializing in books and music. In 1990, Wal-Mart Stores, Inc. acquired Western Merchandisers as a subsidiary; however, it was sold four years later in 1994 to Anderson Media Corporation and subsequently operated under the name Anderson Merchandisers.

In 2000, Hastings Entertainment, Inc. revised its fiscal 1999 financial results amid legal scrutiny over overstated earnings related to its initial public offering (IPO), culminating in a $5.75 million settlement.

Despite widespread closures of video rental chains like Blockbuster during the early 2010s, Hastings thrived by broadening its merchandise portfolio. By 2010, through collaboration with Diamond Comic Distributors, it became the largest direct market comic book retailer nationwide, expanding comic book sections within its stores. That same year introduced Sun Adventure Sport in Texas, focusing on sports equipment sales; followed by Tradesmart’s launch in Colorado in 2011, which specialized in used electronics and media products.

Persistent financial losses by 2012 led Hastings’ board to explore potential buyers. In April 2014, merchandising executive Joel Weinshanker’s Draw Another Circle LLC acquired the company for $21.4 million; CEO John Marmaduke retired with a $1.5 million severance package. The transaction finalized in July 2014.

To combat shrinking revenues from books, music, and video sales amid rising digital competition, Hastings remodeled its stores in 2013 to prioritize higher-margin categories such as toys, consumer electronics, musical instruments, disc golf equipment, skateboards, and licensed merchandise.

In November 2014, Draw Another Circle expanded its footprint by acquiring MovieStop—a chain of 44 stores centered on used movies and entertainment merchandise located primarily in the southeastern United States.

Burdened with $140 million of debt under Draw Another Circle’s ownership, Hastings filed for bankruptcy protection in June 2016. Attempts to secure investors or restructure through franchising were unsuccessful; an auction held in July 2016 resulted in liquidation firms Hilco Merchant Resources LLC and Gordon Brothers Retail Partners LLC outbidding competitors to close all outlets by October that year. Calendar Holdings LLC acquired Hastings’ intellectual property for $300,000 but has yet to announce any plans for brand revival.

At its height before bankruptcy proceedings began, Hastings operated roughly 150 stores across 23 states employing about 3,850 staff members. Following liquidation, retailers such as Vintage Stock and specialty chain 2nd & Charles took over several former locations particularly in Colorado and Texas.

External links

• Calendar Holdings official site – Intellectual Owners of Hastings