Conn's HomePlus Announces Bankruptcy Filing, Store Closures
Conn's HomePlus, the Texas-based home goods, furniture and electronics retailer, filed for Chapter 11 bankruptcy on Tuesday and is closing 73 of its 170 stores, multiple news outlets reported. The closures and bankruptcy filings come after a year of lost profits for Conn's — the company ended 2023 with a year-over-year net loss of nearly $77 million.
In June, Nasdaq filed a delinquency notice saying Conn's had not filed its quarterly report for the fiscal quarter ending April 30 and has until Aug. 19 to submit a plan to regain compliance.
Conn's bought W.S. Badcock, another home goods retailer, at the end of last year, which increased the company's footprint to more than 500 stores between the two brands, CNN reported.
Total Retail's Take: Forbes reported in June that home furnishings retailers have been struggling following the boom of the pandemic when people spent more time at home and invested in home improvements. Furthermore, with home sales slowing and interest rates remaining high, it's been a challenged environment for Conn's and other brands in the home furnishings category.
Case in point: Overall, furniture and home furnishing sales in May were down 6.8 percent year-over-year, according to a monthly report released by the Department of Commerce. Other furniture and home goods companies such as Williams-Sonoma, RH, Ethan Allen, Wayfair, and The Home Depot all posted sales declines in the most recent quarter, according to Forbes.
