Discount Furniture Chain Nearing Bankruptcy, Fate Of 170 Stores Unknown

In today's economy, shoppers just aren't spending as much anymore, something that has been hitting companies incredibly hard. Restaurants like Red Lobster, Pizza Hut, Boston Market, TGI Fridays, Popeyes, Tijuana Flats, Cracker Barrel and Applebee's have been closing locations due to financial issues, as have stores like Bed, Bath & Beyond, Tuesday Morning, Sears, Pizza Hut, CVS, The Body Shop, Express and Walgreens. Even supermarkets and Redbox kiosks aren't immune. Now comes news that a discount furniture, electronics and appliance chain with 170 locations is strongly considering bankruptcy.

Conn's HomePlus, which has stores in 15 states and employs 4,000 people, is struggling with debt due to sluggish sales following their purchase of home goods retailer W.S. Babcock last year. Bloomberg spoke with people knowledgeable about the situation and learned the company could declare Chapter 11 bankruptcy as a solution.

Last week, they announced that the Nasdaq Stock Market sent them a delinquency notification letter because they delayed the filing of their quarterly report, missing the deadline set by the U.S. Securities and Exchange Commission.

Conn's, which is headquartered near Houston in The Woodlands, Texas, first began over 130 years ago as a small plumbing and heating company in Beaumont, Texas. Their bankruptcy filing could happen in the coming weeks, but insiders noted that those plans could also change.