IN TEXAS (MJP) —
The 134-year-old home goods retailer Conn’s HomePlus, which is well-known in fifteen states, planned to shut down seventy-one of its one hundred and thirty stores on Tuesday after filing for Chapter 11 bankruptcy.
Shops selling home furnishings and appliances from this Texas chain are common throughout the American South. In addition, 36 out of 374 Conn’s stores will be closing as a result of the company’s merger with W.S. Badcock.
As to the document, Conn’s has approximately $2.4 billion worth of assets and over $2 billion owed to more than 25,000 creditors. The corporation is investigating the possibility of selling the business and is currently in deep talks with a prospective buyer.
All items at Conn’s are on sale for 30% to 50% off because of the filing. The Conn’s and WSB stores are having closing deals in preparation for their closure on October 31.
These traditional shops aren’t the only ones that have a hard time adapting to shoppers’ shifting preferences this year. Online purchasing has surpassed in-store purchases of furniture and other discretionary items at Conn’s, a trend that began during the COVID-19 epidemic. Buyer spending, especially on long-lasting products, surged in several Conn’s sites despite the change.
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The number of business Chapter 11 bankruptcies increased by 34% in the first half of 2024.
Another recurring element this year has been inflation. Conn’s has witnessed escalating costs of commodities, wage expenses, and service pricing. Hence, a lot of people are putting off getting loans for luxuries. In addition, interest expense jumped from $25.7 million in 2020 to $81.7 million in 2023, according to the business.
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Underperforming stores have cost the corporation $35 million out of a total of $77.4 million in lease payments, which the company is aiming to reduce by closing these locations.
The December 2023 acquisition of W.S. Woodcock has added financial strain to Conn’s already heavy load. Although the merger has supposedly expanded the company’s consumer base, it will take around 12 to 18 months before the expenses are realized.
