Just weeks after announcing it was filing for Chapter 11 bankruptcy protection and that it had a potential buyer, hhgregg has terminated its previously announced nonbinding term sheet with the anonymous party to purchase substantially all of the assets of the company.

The potential buyer and hhgregg were unable to reach a definitive agreement on terms, the retailer maintained. To fund operations of the business during the sale process, hhgregg has obtained interim approval of its $80 million debtor-in-possession loan facility. The company plans to continue operating in the ordinary course of business throughout the restructuring process.

“We have received strong interest from third parties interested in buying some or all of the company’s assets,” said Robert Riesbeck, hhgregg president and CEO. “We and our advisors continue to work with potential acquirers to help them understand our business model for future growth and our value proposition.”