WFCN –
The 85 locations in Texas owned by Conn’s Inc., a bargain furniture and appliance shop, are facing uncertain futures as reports indicate that the company is threatening bankruptcy.
Bloomberg cites sources familiar with the situation as saying that the Texas-based chain, which has been dealing with falling sales and integration problems after acquiring W.S. Badcock, would declare Chapter 11 bankruptcy within the next several weeks.
Conn’s has recently encountered considerable financial difficulties, despite its focus on selling home items to lower-income consumers. The business was notified of delinquency by the Nasdaq Stock Market after delaying its quarterly financial disclosures in its pursuit of debt refinancing. In sharp contrast to its 2021 high of $25 per share, the company’s stock has collapsed to 61 cents, as reported by Bloomberg.
There are currently no indications that the business at 8201 South Gessner Drive in Houston may be closing. There have been reports of planned shutdowns in other parts of the state, though. Approximately 4,000 people across the country could lose their jobs if Conn’s, which has more than 550 locations in 15 states, declares bankruptcy.
After reporting $986.6 million in product sales in the previous fiscal year, Conn’s recorded a steep decline of $903.7 million for the fiscal year ending January 31. The growing cost of living is putting a damper on consumer purchasing, which in turn is causing the company’s financial problems, as reported by the Acadiana Advocate.
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According to Bloomberg, Conn’s has had trouble integrating the new firm, even though it acquired W.S. Badcock, a company based in Florida, in December with the intention of increasing sales. It plans to reorganize its business and deal with its growing debt by considering a Chapter 11 bankruptcy.
No one knows what will happen to the Conn stores in Texas, especially the ones in Houston. As the corporation faces financial difficulties, local employees and customers are left uncertain. Repercussions for the retail industry and the communities Conn serves might be substantial if the company files for bankruptcy.
What happens with Conn will probably show how the retail sector responds to persistent economic pressures.