Furniture Retailer Slashing Stores in Florida Amid Bankruptcy Rumors

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Conn’s Inc., a furniture and home improvement retailer, is hitting the brakes on its operations in Florida, with a significant wave of store closures. The company is shutting down 18 locations across the state, making it the hardest hit by their nationwide closure plan.

Conn’s, known for its wide range of furniture and home goods, is closing a total of 71 stores across 13 states. This move represents about 13% of its entire store fleet. The decision comes amid growing concerns about the retailer's financial health. According to recent reports, Conn’s is not only closing these stores but is also preparing to file for bankruptcy.

Interestingly, there seems to be some confusion about the exact number of closures. While Conn’s website lists 70 locations, Bloomberg reported that the company is actually shutting down 100 stores, including 30 Badcock locations. The company is currently seeking financing to support its bankruptcy filing, which is expected in the coming weeks.

Conn’s financial outlook has been shaky for some time. CreditRiskMonitor recently gave the retailer a FRISK score of 2, indicating a 4% to 9.99% chance of bankruptcy within the next 12 months. This is a downgrade from a score of 4 earlier this year, which suggested a lower risk of bankruptcy.

CEO Norm Miller had previously stated that Conn’s planned to keep its store count steady through the next fiscal year. However, with these recent closures and the looming bankruptcy, the company’s situation seems more precarious than anticipated.

Despite the gloomy forecast, Miller had expressed optimism about the company’s future. He mentioned that the benefits from Conn’s new integrated operating model should start to show in the second quarter and beyond, with expectations for accelerated revenue and earnings growth.

For now, though, Conn’s customers in Florida and beyond will see their local stores closing, leaving a noticeable gap in the furniture retail market. Stay tuned to see how Conn’s navigates these turbulent times and what it means for shoppers and employees alike.