Could Conn’s be on verge of Chapter 11 filing?

THE WOODLANDS, Texas — A report from Bloomberg published on July 1 says Top 100 retailer Conn’s HomePlus is pondering a Chapter 11 filing.

The report cites sales declines and struggles to integrate Badcock Home Furniture &more, which it acquired in December 2023. Unidentified sources told Bloomberg that any filing could come in a matter of weeks, but talks aren’t final, and plans could change.

The Woodlands, Texas-based retailer acquired Mulberry, Fla.-based Badcock from Franchise Group in an all-stock transaction on Dec. 18, 2023, adding some 380 stores in the Southeast to its holdings.

“Combined, we have created a leading home goods retailer with approximately $1.85 billion in revenue across 550 stores. Conn’s also becomes top 20 furniture and mattress retailer in the United States based on Furniture Today’s latest Top 100 list,” CEO Norm Miller said in a call with investors on Dec. 19, 2023, the day after the acquisition was completed. “As a larger furniture and mattress retailer, we believe we will benefit from purchasing and logistics synergies helping support higher retail gross margin in the future.”

On June 26, Conn’s announced that it had received a delinquency notification letter from the Nasdaq Stock Market on June 20 because of its delay in filing its quarterly report on form 10-Q for the fiscal quarter ended April 30 by the applicable due date required by the U.S. Securities and Exchange Commission.

Furniture Today has reached out to Conn’s for comment.

See also:

  • Texas bedding retailer files for Chapter 11 protection
  • News outlet says FTC preps lawsuit to block Tempur Sealy, Mattress Firm deal

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