MJP –
A furniture store in Florida is now reluctantly shutting down its operations after industry analysts cautioned that the company is in danger of going bankrupt.
Conn’s Inc., a retailer of furniture and home improvement products, is currently in the process of shutting down a total of 18 stores located in the state of Florida.
According to information on its website, the company is shutting down an impressive total of 71 stores spread across 13 states, with Florida leading in the number of stores being closed.
The shutdowns account for approximately 13% of its stores and come as Bloomberg reports that the home retailer is getting ready to declare bankruptcy.
Although the retailer’s website only shows 70 stores, a recent Bloomberg report revealed that the company plans to close down a total of 100 stores, with 30 of them being Badcock locations.
As per the report, Conn’s is also considering filing for bankruptcy in the upcoming weeks and is actively seeking funding for the procedure.
Conn’s did not provide a comment in response to inquiries from outlets such as Retail Dive regarding the filing or the closures.
The Texas retailer was recently assigned a FRISK score of 2 by CreditRiskMonitor, indicating a likelihood of bankruptcy between 4% and 9.99% within the upcoming year.
SEE MORE –
Closing Maybe Soon! Popular Retailer to Shut Down Almost 40 Locations
The FRISK score of Conn has decreased since May, dropping from a rating of 4, indicating a probability of bankruptcy between 1.4% and 2.1%. CreditRiskMonitor reports that it has stayed at 4 or lower for more than a year.
In April, CEO Norm Miller announced that the company anticipated keeping its existing number of stores throughout the upcoming fiscal year.
During an earnings call transcript, Miller mentioned that the two banners had a certain degree of convergence in Florida and North Carolina, hinting at the possibility of merging them.
Miller also mentioned at the beginning of the year that the purchase would have an impact on the results for the first quarter.
He mentioned that the advantages of the company’s innovative operational structure will start to show in the second quarter and continue to boost revenue and earnings growth for the rest of the year.
To receive similar updates on store closures, subscribe to push notifications.
