A furniture retailer now makes painful closures in Florida after industry experts warned that the company is at risk of bankruptcy.
Conn’s Inc., a furniture and home improvement retailer is now closing a total of 18 stores in the state of Florida.
The company is closing a whopping 71 stores across 13 states according to its website, with Florida having the most store closures.
The closures represent about 13% of its store fleet and come amid a Bloomberg report that the home retailer is prepping to file for bankruptcy.
While only 70 locations are listed on the retailer’s website, a Bloomberg report from late last week said the company is shuttering 100 stores, 30 of which are Badcock locations.
According to that report, Conn’s is also planning a bankruptcy filing in the coming weeks and is searching for financing for the process.
Conn’s did not respond to a request for comment from sources like Retail Dive on the filing or the closures.
CreditRiskMonitor recently gave the Texas-based retailer a FRISK score of 2, which represents a 4% to a 9.99% chance of filing for bankruptcy in the next 12 months.
Conn’s FRISK score has declined since May from a score of 4, which represents a 1.4% to 2.1% chance of bankruptcy. It has remained at 4 or below for over a year, according to CreditRiskMonitor.
CEO Norm Miller said in April that the company expected to maintain its current store count through the next fiscal year.
Miller said the two banners had some overlap in Florida and North Carolina and said “there could be some consolidation,” according to an earnings call transcript.
Miller also said earlier this year that the acquisition would affect Q1 results.
But he added that benefits of the company’s new integrated operating model should emerge in the second quarter and throughout the rest of the year, along with accelerated revenue and earnings growth.
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Also Read: An Unexpected Retailer Is Now Closing All Stores in Illinois
Other Economy News Today
A beloved grocery chain now confirms unexpected closures across the Northeast taking place by the end of the year.
Grocery chain Stop & Shop has announced that a total of 32 underperforming locations will shutter in the U.S.
The company said the select stores across the Northeast will be closed before the end of the year.
Stores in New Jersey, Massachusetts, New York, Connecticut, and Rhode Island will close by November 2.
In May, the company announced the coming store closures.
“Stop & Shop has evaluated its overall store portfolio and made the difficult decision to close underperforming stores to create a healthy base for the future growth of our brand,” company president Gordon Reid said, per a July 12 press release.
The company’s president added that the closures were essential “to create a healthy base for the future growth of our brand.”
Fortunately, employees will be offered other positions within the company, according to a press release.
The grocery outlet first opened in 2014 and currently has around 400 stores and 60,000 employees, per Fox affiliate KRLD.
Stop & Shop is owned by Ahold Delhaize which also owns Food Lion, Giant Food, and Hannaford.
Which grocery stores are closing?
In New Jersey, 10 locations will close, while only seven will close in New York.
Rhode Island will see two closures and Massachusetts, the home of the first location, will be closing eight.
Five stores will also be closing in Connecticut.
As other chains such as Walmart and Amazon join the grocery business, it has pushed traditional grocery stores out of view, reports The-Sun.
Stop & Shop hopes the closure of underperforming stores will create “future growth” for the company.
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