Conn’s HomePlus Files for Bankruptcy After 134 Years

Conn’s HomePlus has announced that it has filed for Chapter 11 bankruptcy protection and will be closing nearly half of its 170 nationwide stores.

CNN is reporting that the 134-year-old retailer, which sells furniture and electronics, has obligations and assets totaling at least $1 billion each.

Conn’s HomePlus’s website lists the 73 locations that are closing. The most affected state is Florida, where 18 stores will shortly close, followed by Texas, which will lose 9 stores. Store closings are also occurring in Arizona, Colorado, North Carolina, and Virginia.

Another home goods retailer called “Badcock Home Furniture & more,” which serves the southeast U.S., was acquired by Conn’s last year. After the acquisition, the company’s combined retail presence across the two brands surpassed 500 locations; yet 35 Badcock locations are also closing.

Conn’s shares have dropped more than 90% this year, and a few weeks ago, Nasdaq sent the company a delisting notice.

According to a company representative, Conn’s HomePlus “continues to have ongoing discussions with potential buyers to sell all or parts of the business and preserve jobs” while it navigates the Chapter 11 process.

Following a pandemic boom, major furniture retailers like Conn’s are still having financial difficulty, especially as Americans deal with ongoing inflation. As a result, Wayfair has significantly cut back on staff, while furniture shops Z Gallerie and Mitchell Gold + Bob Williams have filed for bankruptcy in the last year.

Conn’s HomePlus is just the latest retailer to file for bankruptcy protection.

Following reports that Big Lots was potentially filing for bankruptcy, the company also announced that it was closing more locations and warned investors that it could no longer stay afloat for much longer.

Additionally, earlier this month, Bob’s Stores had to liquidate due to financial difficulties, despite having significant community ties. As a result, all of Bob’s Stores have closed.

A number of states, including Connecticut, Massachusetts, New York, New Hampshire, New Jersey, and Rhode Island, have been impacted by the store closures. These locations had substantial discounts on liquidation deals, with savings of 30% to 70% off typical pricing. In addition, equipment, furniture, and retail fixtures were for sale.