Houston-Based Conn’s Mulling Over Liquidation Plans

Conn’s has outlined plans for a potential “full-chain liquidation” after seeking court approval for bankruptcy protection. The furniture and appliances retailer, which has 553 locations and 3,800 employees in 15 states, listed more than $2.44 billion in total assets and nearly $1.95 billion in total debts as of Jan. 31. The company recently filed for voluntary Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Northern District of Texas. In the filing, the company said it is struggling with rising costs and declining sales.

The Houston Business Journal reports Conn’s blamed a lull in sales on the pull-forward effect of the COVID-19 pandemic and macroeconomic pressures on consumers, leading to declining revenue over the past three years, increased interest-rate expenses, and costs associated with the 2023 takeover of another business. Conn’s recently initiated store-closure sales at 106 of its locations—two of which are in the Houston area. As Conn’s goes through the Chapter 11 process, the company continues to have ongoing discussions with potential buyers to sell all or parts of the business.