Today, hhgregg, inc (NYSE: HGG) announced a massive bittersweet insurance payment connected to the death of its Executive Chairman of the Board: (emphasis added):
hhgregg, Inc. (the “Company”) received $40 million of insurance proceeds related to the untimely death of its Executive Chairman of the Board and former Chief Executive Officer, Mr. Jerry W. Throgmartin. The insurance proceeds were related to a key man life insurance policy that the Company held on Mr. Throgmartin. Of the $40 million of insurance proceeds, approximately $600,000 will be paid as severance to Mr. Throgmartin’s personal estate over the two-year period following his death in accordance with the terms of his employment agreement. The remaining $39.4 million will remain with the Company and be used for general corporate and working capital purposes. The Company does not expect to record any tax expense related to the insurance proceeds.
Before market open, the company’s market cap was $440 million. This represents a one-time boost to be used for “general corporate and working capital purposes” of 9% of its market cap. Wow.
I’ve written about HGG here.
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