The Woodlands, Texas, headquartered furniture retailer Conn’s is having doubts about its ability to move forward and is considering Chapter 11 filing, according to a recent report by Bloomberg.
Conn’s is reportedly dealing with declining sales while also having difficulties integrating home goods retailer Badcock, which it acquired back in 2024. The acquisition of Badcock added 380 stores to Conn’s network but failed to expand the company’s reach and boost its sales numbers as expected.
Bloomberg notes that Conn’s could still change its decision and continue business as usual. However, if it remains committed to the bankruptcy route, the official filing should take place in the coming weeks. The company recently turned to advisors from Houlihan Lokey Inc. and Berkeley Research Group to guide it through the process.
The news comes after Conn’s received a delinquency notification letter last month following a delay in filing a quarterly report. According to the company, the delay was required due to its inability “to complete disclosures related to possible amendments to, or the refinancing of its revolving credit facility that were required to be included.”
Conn’s stock has had a rough year, sliding 77% even before Bloomberg’s report came out. After the news about possible bankruptcy went public, its shares went down by another 35% in after-market trading.