Conn's HomePlus is about to become the latest retailer to close up shop and wind down its business, rolling out liquidation sales at its more than 550 namesake stores and Badcock's Home Furniture & More locations.
B. Riley Retail Solutions on Thursday said it was managing the liquidation process, both online and at brick-and-mortar sites, across Alabama, Arizona, Colorado, Florida, Georgia, Louisiana, Mississippi, Nevada, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, Texas and Virginia. The announcement came two days after The Woodlands, Texas-based Conn's — a seller of home appliances, furniture, mattresses, consumer electronics, and accessories and personal computing devices — filed for Chapter 11 bankruptcy protection in the Lone Star State.
Conn's will be joining a growing number of chains that have shut this year and last year, retailers that have blamed elevated inflation and interest rates for putting a brake on consumer spending, leading to their demise. This year, the 99 Cents Only, Sam Ash Music, Bob's Stores and Rue21 chains are among those that closed down, with others such as Macy's and Family Dollar downsizing their store fleets.
The furniture and home goods retail sectors have been hit particularly hard since the end of the pandemic. Bed Bath & Beyond, Z Gallerie and Mitchell Gold + Bob Williams filed for bankruptcy within the past year and closed their stores. This year, Big Lots has warned it may cease operations and is closing at least 140 stores.
A spokesman for Conn's declined to comment Thursday.
Liquidation was a possible outcome of Conn's bankruptcy filing, according to James Gellert, executive chairman of RapidRatings, a financial data analytics company.
"More often than we'd like to see, these days a lot of companies are skeptical of their ability to rebound with constructive capital structures even after a Chapter 11 bankruptcy," he said in an email to CoStar News. "Conn's faced significant challenges including poor cash flow, overwhelming debt and plummeting sales. Their financial health rating of 28 out of 100 placed them in high-risk territory. Combined with broader retail industry struggle, like changing consumer habits and economic uncertainty, liquidation was likely."
In its initial Chapter 11 documents Tuesday, Conn's provided a list of the initial 105 Conn's HomePlus and Badcock stores it intended to shutter. In subsequent court filings, the bankruptcy judge approved the liquidation.
At the store-closing sales, discounts will start at 30% to 50% off across in-store and online merchandise, including name-brand furniture, home electronics and appliances to sell all inventory, according to B. Riley Retail. Store furnishings, fixtures, and equipment are also available for sale.
Conn's merchandise assortment include refrigerators, ranges and stovetops, dishwashers, washers and dryers, TV sets, home theater audio and video electronics and mounts, fitness equipment, smart home accessories, as well as computer desktops, laptops, printers, and computer and gaming accessories.
"Conn's and Badcock have served as a go-to destination for its loyal customers' home goods necessities for over a century," Tim Shilling, president of B. Riley Retail, said in a statement. "This sale is an opportunity for shoppers to purchase a wide array of quality furnishings for every room in the home, including brand name appliances and electronics at unprecedented discounts."
All sales are final during the store-closing events. No returns or exchanges will be allowed for purchases made during the liquidation sales.