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We have, however, received and accepted a bid for liquidation of our assets." HHGregg has 15 stores and a distribution center in the Chicagoland market, which it made a big push into after Circuit City went bankrupt and collapsed in 2009.

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The filing Wednesday makes the case for pushing the company — which emerged from Chapter 11 protection in April — into a liquidation.

“Given the material defaults under the plan, the Reorganized Debtors’ ongoing losses and lack of liquidity, and the questions about the effectiveness and trustworthiness of management, it is necessary and appropriate for the Court to convert these cases to one under Chapter 7,” the filing says.

It adds that the shift to Chapter 7 status would allow “a trustee [to] take charge of the modest remaining assets, liquidate them, and distribute the proceeds accordingly.” The filing notes that many bills have gone unpaid since Relativity reorganized, including more than million owed to bankruptcy lawyers and other professionals.

HHGregg, an Indiana retailer that once aspired to take Circuit City's place as the second largest home electronics retailer in the United States, will vanish from the Midwestern suburban landscape where it's been a staple after failing to find a buyer to take it out of bankruptcy.

The Indianapolis-based consumer electronics, appliances and furniture retailer plans to close all of its remaining big-box stores nationwide, including its locations in Highland, Merrillville and Orland Park.

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