Home goods and furniture retailer Conn’s has filed for bankruptcy, putting hundreds of stores at risk.
In recent days, the Texas-based chain said it would close 73 of its stores in 13 states as it considers bankruptcy.
Then on Tuesday, he filed for Chapter 11 bankruptcy with debts of more than $1 billion, though he also said he had assets, such as stocks and stores, that were also worth that amount.
The filing allows it to continue operating while it liquidates stores.
The closures so far represent 13 percent of its 553 total locations. There are fears the bankruptcy could lead to even more closures, including under the Badcock Home Furniture & More banner, a brand it bought last year.
A Conn’s HomePlus store in Knoxville, Tennessee, on Thursday, March 26, 2015. This store will close pending a last-minute sale.
Headquartered in The Woodlands, Texas, Conn’s has been around in one form or another for 134 years.
First, it was a plumbing and heating company, and in 1933 Carroll Wayne Conn, Sr. acquired the store, giving Conn’s its modern namesake.
The store first entered the refrigerator retail business in 1937, but today sells everything from appliances to televisions, furniture and more.
For years, Conn’s has struggled with growing its physical presence.
That led it to buy WS Badcock, another home goods chain operating under the then name Badcock Home Furniture & More, in December 2023. That dramatically increased the number of stores.
But that left the company with debt and high overhead costs, Bloomberg reported.
In a April DisclosureConn’s announced that it closed 2023 with a year-over-year net loss of nearly $77 million.
Conn’s stock has been in free fall for more than three years, down a staggering 98 percent since June 2021.
DailyMail.com has reached out to Conn’s for comment on the closures and bankruptcy but did not immediately receive a response.
Conn’s first entered the retail business with refrigerators in 1937, but today sells everything from appliances to televisions, furniture and more.
Conn’s appears to have struggled with its growing brick-and-mortar presence, culminating in the acquisition of Badcock in December 2023 that has saddled the company with debt and high overhead costs, Bloomberg reported.
The latest troubles facing Conn’s come amid a widespread “retail apocalypse” that is seeing brick-and-mortar stores struggle to combat rampant theft and increasingly tight margins.
By the end of April, US retailers had announced the closure of nearly 2,600 stores by 2024.
Walmart, the largest U.S. retailer, has closed 11 stores so far this year.
In early April, dollar store 99 Cents Only said it would close ALL 371 of its stores, while Best Buy closed ten. in March.
dollar tree is closing 1,000, Macy’s 150 – a third of its total – and pharmacy Rite Aid 77.
In recent months, there have been a number of bankruptcies, along with store closures.
Express, a mall staple, filed for bankruptcy in April and said it would close 95 Express locations along with all of its UpWest stores.
In early May, Rue21, the teen fashion chain that is a fixture in malls across the United States, also said it will close all 543 of its U.S. stores.