Home furnishings chain Conn’s is closing 71 of its stores in 13 states.
The move follows a report in Bloomberg that the company is just weeks away from filing for bankruptcy.
The closures represent 13 percent of the 553 total locations. The states losing stores are Alabama, Arizona, Colorado, Florida, Georgia, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas and Virginia.
Florida and Texas, the two states hardest hit, are losing 18 and 9 stores, respectively.
Bloomberg reported late last week that the upcoming round of closures would target about 100 stores, including 30 stores owned by home improvement chain WS Badcock.
Conn’s acquired it last year to expand its reach, but so far none of the closed stores bear the Badcock name. If they do close, that would bring the total to 100.
A Conn’s HomePlus store in Knoxville, Tennessee on Thursday, March 26, 2015. This store is closing in anticipation of a last-minute sale
After three consecutive years of financial losses due to rising inflation, Conn’s is reportedly considering liquidating its inventory.
Company executives have held talks with key investors in hopes of freeing up cash to finance a potential bankruptcy, Bloomberg reported.
The plans for the submission are not yet final and may still change.
Conn’s, headquartered in The Woodlands, Texas, has been in business in one form or another for 134 years.
At first it was a plumbing and heating company, but in 1933 the store was taken over by Carroll Wayne Conn Sr., giving Conn’s its current name.
The store started out in 1937 selling refrigerators, but today it sells everything from household appliances to televisions, furniture and much more.
Conn’s has reportedly struggled to cope with its growing physical footprint for years, culminating in its acquisition of Badcock in December 2023. As a result, the company has been burdened with debt and high overhead costs, Bloomberg reports.
But it could also have been a last-ditch effort to boost the numbers, which didn’t look good at the end of last year.
Conn’s started selling refrigerators in 1937, but today the company sells everything from home appliances to TVs, furniture and more.
Conn’s appears to be struggling to cope with its growing brick-and-mortar presence, culminating in its acquisition of Badcock in December 2023, saddling the company with debt and high overhead costs, Bloomberg reported.
In a April DisclosureConn’s reported it ended 2023 with an annualized net loss of nearly $77 million.
At the time, President and CEO Norm Miller said he was “confident that the Badcock transaction … will enable us to emerge stronger and more resilient than ever.”
Another indication of the turmoil behind the scenes came on June 26, when Conn’s allowed it was no longer in line with the Nasdaq.
This was because the company had not yet filed financial data for the quarter ended April 30, the deadline set by the U.S. Securities and Exchange Commission.
This has not affected the company’s ability to trade on the stock exchange, but it has until August 19 to come back into compliance.
Conn’s shares have been in free fall for more than three years, with a staggering 98 percent drop 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.
Conn’s latest troubles come amid a widespread “retail apocalypse,” with brick-and-mortar stores struggling with rising theft and ever-tightening profit margins.
In late April, US retailers announced they would close nearly 2,600 stores by 2024.
Walmart, the largest retailer in the US, has closed 11 stores so far this year.
Earlier in April, dollar store 99 Cents Only said it would close all 371 of its stores, while Best Buy closed 10. in March.
Money tree close 1,000, Macy’s 150 – a third of the total – and drugstore Ritual aid 77.
There has been a series of bankruptcies and store closures in recent months.
National coffee and luxury supermarket chain Foxtrot also announced in early April that it would be closing all of its stores with immediate effect, leaving staff and customers stunned.
Express, a well-known mall-based retailer, filed for bankruptcy in April and said it would close 95 Express locations, in addition to all of its UpWest stores.
In early May, Rue21, the teen fashion chain that is a fixture in malls across America, also announced that it will close all of its 543 stores in the US.