Conn’s Home Plus, a home goods store with a 134-year history, has filed for Chapter 11 bankruptcy. The company plans to close 71 of its 170 stores, including the Texarkana location. Based in Texas, Conn’s operates throughout the southern United States.
Conn’s recently merged with W.S. Badcock, resulting in 36 of Badcock’s 374 stores closing.
In the bankruptcy filing, Conn’s reported $2.4 billion in assets and nearly $2 billion in debt to over 25,000 creditors. The company is exploring a potential sale and is in discussions with a prospective buyer.
Amid the filing, Conn’s is offering a site-wide sale with discounts of 30% to 50%. Going-out-of-business sales at Conn’s and WSB locations will run until October 31, 2024.
Conn’s has struggled with changes in customer shopping habits, especially a shift to online shopping during the COVID-19 pandemic. Inflation has also impacted the company, with rising costs and increased interest expenses, which jumped from $25.7 million in 2020 to $81.7 million in 2023.
Under performing stores have cost Conn’s $35 million of its total $77.4 million in lease payments. The recent acquisition of W.S. Badcock has added financial stress, though the company expects the benefits of the merger to materialize in 12-18 months.
