Home goods and furniture retailer Conn’s is closing 71 of its stores in 13 states.
The move comes after a report in Bloomberg that the company is weeks away from declaring bankruptcy.
The closures represent 13 percent of its 553 total locations. States losing stores include Alabama, Arizona, Colorado, Florida, Georgia, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas and Virginia.
Florida and Texas, the two hardest hit states, are losing 18 and nine stores, respectively.
Bloomberg reported late last week that the next wave of closures would affect about 100 stores, 30 of which would be stores operating under the brand of home goods retailer WS Badcock.
Conn’s acquired it last year in an attempt to expand its reach, but so far, none of the closed stores bear the Badcock name. If they close, the total would rise to 100.
A Conn’s HomePlus store in Knoxville, Tennessee, on Thursday, March 26, 2015. This store will close pending a last-minute sale.
After three consecutive years of financial losses amid rising inflation, Conn’s is reportedly considering liquidating its inventory.
Company leaders have been meeting with key investors in hopes of securing cash to help fund a potential bankruptcy filing, Bloomberg reported.
Presentation plans are not yet final and are subject to change.
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 appears to have struggled with its growing brick-and-mortar presence, culminating in its acquisition of Badcock in December 2023, which has saddled the company with debt and high overhead costs, Bloomberg reported.
But it may have been a desperate effort to boost numbers, which were not looking good at the end of last year.
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.
In a April DisclosureConn’s announced that it closed 2023 with a year-over-year net loss of nearly $77 million.
At the time, Chairman and CEO Norm Miller said he was “confident that the Badcock transaction… will position us to emerge stronger and more resilient than ever.”
Another indication of the behind-the-scenes turmoil came on June 26, when Conn’s… accepted It had defaulted on the Nasdaq.
That was because it had not yet filed its financial statements for the quarter ended April 30, the deadline required by the U.S. Securities and Exchange Commission.
This did not affect the company’s ability to be listed on the stock market, but it has until August 19 to regain compliance.
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 possible bankruptcy but did not immediately receive a response.
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.
National coffee and upmarket supermarket chain Foxtrot also said earlier in April that it would close all its stores with immediate effect, leaving staff and customers stunned.
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.