Texas Furniture Store, Conn's, Plans to Close Nearly 100 Locations—Considering Bankruptcy

Photo byConns Homeplus

Austin, TX - Texas-based furniture retailer Conn’s is planning to close nearly 100 stores and liquidate inventory, with a bankruptcy filing on the horizon.

What's Behind Conn’s Bankruptcy Consideration?

Conn’s has faced significant financial difficulties over the past few years, marked by three consecutive fiscal years of losses. As rising living costs have led consumers to cut back on discretionary spending, including furniture purchases, the company's shares have plummeted by over 80% in 2023 and are now trading at less than $1. The integration of Badcock Home Furniture & More, acquired in December 2023, has also posed challenges for Conn’s.

A potential Chapter 11 bankruptcy filing may occur within weeks, though discussions are ongoing and plans could still change.

What is Chapter 11 Bankruptcy?

Chapter 11 bankruptcy, also known as reorganization bankruptcy, allows a company to continue operating while developing a plan to repay creditors. During this process, the company is protected from creditors and can continue to pay employees and suppliers. The goal is to restructure the company's debt and emerge from bankruptcy as a viable business.

Chapter 11 Bankruptcy Process:

1. The company files a petition with the bankruptcy court.
2. The court appoints a trustee to oversee the process.
3. The company develops a repayment plan for creditors.
4. Creditors vote on the plan.
5. If approved by the court, the company can emerge from bankruptcy.

Conn’s Presence in Texas

Conn’s currently operates 85 stores in Texas and more than 150 locations across the U.S. It is unclear which Texas locations will be closed.

In December 2023, Conn’s, based in The Woodlands, Texas, acquired Badcock, a Mulberry, Florida-based company, from Franchise Group, adding approximately 380 stores in the Southeastern U.S. to its portfolio.

States with Conn's Stores:

• Texas
• Alabama
• Arizona
• Colorado
• Florida
• Georgia
• Louisiana
• Mississippi
• Nevada
• New Mexico
• North Carolina
• Oklahoma
• South Carolina
• Tennessee
• Virginia

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