Furniture retailer Conn’s Inc. is facing a major downsizing as it prepares for bankruptcy.
The company plans to close about 100 stores and sell off inventory in the coming weeks.
This move reflects the broader economic challenges many retailers are facing under current policies.
Conn’s is actively seeking investors to help fund its bankruptcy process.
The planned closures would cut nearly 20% of its total locations and over 40% of company-owned stores.
Conn's furniture store to close more than half of its locations. What to know in Tennessee https://t.co/Daajj3Rn3i
— Commercial Appeal (@memphisnews) July 19, 2024
As of April, Conn’s had more than 550 locations, though most were franchises.
The company’s financial troubles are clear. Conn’s stock has dropped over 80% this year, now trading below $1.
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It’s been losing money for three years straight as customers cut back on non-essential purchases.
Last year’s purchase of W.S. Badcock, meant to expand Conn’s reach, seems to have backfired.
About 30 Badcock stores are likely to close. The deal also left Conn’s with more debt and higher costs.
This situation isn’t just about Conn’s.
It shows how current economic conditions are hurting both businesses and consumers.
As inflation continues to rise, many Americans are choosing to buy only necessities, skipping items like furniture and home goods.
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The planned bankruptcy could also affect B. Riley Financial Inc., which lent money to Conn’s for the Badcock deal.