Conn’s, a furniture and appliances retailer with 553 locations and 3,800 employees in 15 states, has announced potential plans for a “full-chain liquidation” as it seeks court approval for bankruptcy protection. As of Jan. 31, the company reported over $2.44 billion in total assets and nearly $1.95 billion in total debts.
The company recently filed for voluntary Chapter 11 bankruptcy protection at the U.S Bankruptcy Court for the Northern District of Texas due to financial struggles caused by increasing costs and declining sales. According to reports from the Houston Business Journal, Conn’s attributed this decline to factors such as reduced consumer spending due to COVID-19 pandemic effects and macroeconomic pressures.
Over the past three years, Conn’s has experienced decreasing revenue along with increased expenses related to interest rates and its acquisition of another business set for completion in 2023.
In response to these challenges, Conn’s has initiated store-closure sales at two Houston-area locations out of a total of106 stores affected nationwide. While going through Chapter11 proceedings,the company is also actively engaging potential buyers interestedin purchasing all or parts of its business operations.
