One more retail chain files Chapter 11 bankruptcy,…

One more retail chain files Chapter 11 bankruptcy, closes stores

A lot has changed since 2019.

In the United States, we've had a different presidential administration, survived a pandemic, seen interest rates plummet and skyrocket, and changed the way we shop almost overnight.

The latter statement might sound a bit extreme. To be sure, our consumer and shopping habits have been on a long trajectory of change for some time now. Thanks to the advent of online shopping, many of us had begun to shop on the internet for everything from engagement rings to frozen onion rings well before Covid.

But the pandemic certainly accelerated that trend. Almost three-quarters of us now have bought groceries online in the past 90 days. Retailers like Walmart (WMT) and Amazon (AMZN) have reported seeing a huge spike in paid memberships, mainly because paying someone else to do the heavy lifting and fulfillment for you is more convenient.

But this leaves many legacy retailers in a bind. Mall anchor stores like Macy's and JC Penney have struggled to return from declining foot traffic. Large newcomer discount retailers have gobbled up the market share of mom-and-pop regional shops. And if you specialize in selling just one niche product -- like crafts, party supplies, or discount furniture -- chances are you've had a rough past several years.

Discount furniture store has struggled

Such has been the case with Conn's HomePlus, a regional Texas-based discount furniture shop with hundreds of locations, mostly around the American Southeast.

The chain, which acquired Badcock Home Furniture & More in late 2023 and sells everything from memory foam mattresses to kitchen appliances, has struggled to maintain profitability as higher interest rates force folks to put off larger purchases.

In July, the chain announced it would shutter over 100 stores nationwide after reporting three years of consecutive fiscal losses. And depending on the anticipated liquidation process, up to 40% of the retailer's locations could be shuttered.

Conn's HomePlus files Chapter 11 Bankruptcy

And now, Conn's has said it will file for Chapter 11 bankruptcy protection and close nearly half of its 170 total locations.

It filed in the U.S. Bankruptcy Court for the Southern District of Texas. The retailer will continue operations as it works to sell its remaining assets.

As of Thursday evening, the Conn's website posted a "going out of business sale" with 30-50% off discounts.

More Retail:

"Everything must go site-wide and in-store," the site reads, "limited exclusions, all sales final."

The retailer plans to close 18 locations in Florida, nine in Texas, and seven in Arizona. Several other closures are planned throughout Virginia, Colorado, Mississippi, and Oklahoma.

In April, Conn's most recently reported quarter, the furniture retailer saw a net loss of approximately $77 million for the fiscal year. Revenue declined nearly 8% compared to the same period one year prior.

Nearly 4,000 people work for Conn's, and a spokesperson for the company said it “continues to have ongoing discussions with potential buyers to sell all or parts of the business and preserve jobs.”

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