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Conn’s is closing more than 70 stores nationwide: 18 in Florida, 9 in Texas and 7 in Arizona

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Well-known home goods and furnishings retailer Conn's Inc. has sought Chapter 11 bankruptcy protection and is closing 70+ stores nationwide

Texas – In a major move that has shaken the retail sector, well-known home goods and furnishings retailer Conn’s Inc. has sought Chapter 11 bankruptcy protection. The Tuesday application in the U.S. Bankruptcy Court for the Southern District of Texas indicates significant financial difficulty for the retailer, which has said it will close more than 70 of its Conn’s HomePlus shops throughout 13 states.

The company’s announcement claims that a sizable section of its network will be impacted by the closures; stores closing in states including Florida, Texas, and Arizona among others. With 18 outlets, Florida will witness the most closures; followed by Texas with nine and Arizona with seven. This action shows the company’s attempts, in a difficult economic environment, to simplify processes and better control debt.

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Earlier in the month, reports had suggested the likelihood of bankruptcy; the specifics of the file now more clearly show the company’s financial problems. With an estimated 25,000 to 50,000 creditors engaged, Conn’s Inc. has stated assets and liabilities each in the range of $1 billion to $10 billion, therefore highlighting the great scope of its financial commitments.

The company’s financial situation is further complicated by its ownership of W.S. Babcock LLC, a furniture company it acquired last December that also filed for bankruptcy. This action implies that the difficulties touch Conn’s connected companies as well, going beyond its main operations.

Well-known home goods and furnishings retailer Conn's Inc. has sought Chapter 11 bankruptcy protection and is closing 70+ stores nationwide

Courtesy of Conn’s

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This financial downturn comes after the retailer reported a significant drop in its annual revenues. Conn’s saw a net loss of $76.89 million in addition to a 7.8% overall revenue drop of $1.2 billion over the last year. These numbers capture the larger challenges the business deals with in a retail setting that is getting more unforgiving.

Indicating a coordinated approach to conducting the proceedings, the bankruptcy filing not only seeks protection from creditors but also calls for a joint administration of Conn’s Inc. and its connected firms. This calculated move might help the business negotiate more seamless financial recovery and help to simplify the restructuring procedure.

The effect of the store closures will probably be felt in the areas where Conn’s Inc. operates, influencing staff members and local businesses as the company keeps handling financial difficulties. For Conn’s, the next months will be vital while it reorganizes its activities in hopes of coming out of bankruptcy as a leaner and more financially solid company.

Here are the states and the number of Conn’s HomePlus stores closing in each state:

  • Alabama: 1
  • Arizona: 7
  • Colorado: 6
  • Florida: 18
  • Georgia: 2
  • Louisiana: 6
  • Mississippi: 2
  • North Carolina: 4
  • Oklahoma: 4
  • South Carolina: 3
  • Tennessee: 4
  • Texas: 9
  • Virginia: 5