Conn's HomePlus, a venerable 134-year-old furniture and electronics retailer, has filed for Chapter 11 bankruptcy and announced plans to close nearly half of its 170 stores. The Texas-based company, which primarily operates in the southern United States, cited slumping sales and a broader slowdown in discretionary consumer spending as key factors behind its financial troubles.
According to the bankruptcy filing submitted on Tuesday, Conn's has both assets and liabilities valued at a minimum of $1 billion each. The company has faced significant financial challenges, with its stock plummeting over 80% this year and receiving a delisting notice from Nasdaq.
The closure of 73 Conn's HomePlus stores will hit several states hard, with Florida losing 18 stores and Texas seeing 9 locations shuttered. Other affected states include Arizona, Colorado, North Carolina, and Virginia. A comprehensive list of the closing stores is available on the company's website.
Conn's expansion strategy included the acquisition of W.S. Badcock, a southeastern home goods retailer operating under the "Badcock Home Furniture & More" brand. This purchase had initially increased Conn's total retail footprint to more than 500 stores across the two brands. However, the bankruptcy will also see 35 Badcock stores closing, further diminishing Conn's presence in the market.
The company's struggles are emblematic of the broader challenges facing major furniture retailers in the post-pandemic economy. The sector experienced a boom during the pandemic, but persistent inflation and a shift in consumer spending away from big-ticket items have led to significant financial strain. This trend has also affected other furniture retailers, such as Z Gallerie and Mitchell Gold + Bob Williams, both of which have filed for bankruptcy within the past year. Online furniture retailer Wayfair has also faced difficulties, resulting in substantial workforce reductions.
The closure of Conn's stores will have a widespread impact, particularly in Florida and Texas. In Alabama, the Conn's store in Birmingham at 9530 Parkway East in Roebuck is among those set to close, although locations in Homewood, Huntsville, Mobile, and Montgomery will remain open. Similarly, several Badcock stores in Alabama, including those in Homewood, Fort Payne, Huntsville, Jasper, Pell City, and Scottsboro, are slated for closure.
Despite the challenges, some industry analysts suggest that the downsizing could potentially allow Conn's to stabilize its finances and focus on more profitable locations. However, the long-term viability of this strategy remains uncertain in an environment where consumer spending patterns continue to evolve in response to economic pressures.
