A massive home improvement retailer is now considering bankruptcy due to declining sales as its customers cut back due to rising inflation.
Conn’s Inc., a furniture and appliance store headquartered in Texas may be forced to close its doors as it considers filing for bankruptcy.
The retailer may soon file for Chapter 11 bankruptcy and is seeking advice from financial and operational advisers, according to Bloomberg.
Inflation and a loss of sales have put the retailer in this position.
The Bloomberg report does not name any sources but states that the people they have spoken to have knowledge of the plans.
At this stage, however, talks are not final and it is possible that plans could change, Bloomberg says.
Signs in front of the Baton Rouge store, in Louisiana, indicate that the store will close soon, per The-Sun.
There are reports of other stores across the country getting ready to close too.
Conn’s was approached for a comment on the issue but did not respond.
Although Conn’s purchased W.S. Badcock, another furniture store, in December 2023 to try and increase its sales, the retailer has struggled to integrate the business since then.
W.S. Badcock is a rival home goods chain, but its purchase has not done enough to boost Conn’s sales.
Conn’s has suffered three financial years of losses.
Its shares have fallen 77% this year, per Bloomberg.
Shares have also dropped an additional 18% this month alone.
The retailer delayed filing its quarterly financial reports last month in an attempt to refinance debt.
On the same day Conn’s delayed this report, it reported borrowing $25 million under a loan agreement.
Conn’s has more than 500 stores located across 15 states.
The store was founded 134 years ago, in 1890, as a plumbing and heating company.
The company then became Conn’s in 1934.
It must be noted that the reports of the retailer filing for bankruptcy are not final.
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Also Read: Another Mall Clothing Retailer Now At High Risk of Bankruptcy
Other Economy News Today
A massive rental company with 34k locations now shuts down its operations after filing for bankruptcy and 22 years in business.
Users of movie rental company Redbox were left saddened after it was announced that it would be shutting down operations.
The announcement comes after the rental company’s parent company, Chicken Soup for the Soul Entertainment, filed for Chapter 11 bankruptcy.
According to court documents obtained by the Washington Post, the Connecticut-based company claimed to be one billion dollars in debt.
As a result, Redbox, which was a staple of many grocery stores including Walgreens, and CVS will be shuttered.
Many fans took to social media to express how upset they were with the loss.
“I knew it was coming, sadly,” UltraVada wrote in a post on X, formerly Twitter.
“It was inevitable,” a second person mourned.
“I knew this would happen when I heard they filed for Bankruptcy but its still sad to hear. I have a lot of fun memories of Redbox,” a third person lamented.
“I still don’t think this will be or ever be the end of physical media as we do still get remasters of some movies in 4k/Bluray.”
One person revealed that they had forgotten the rental service had existed.
Some users were not surprised by the announcement.
“Not surprised since nobody really rents videos anymore with the rise of streaming and what not,” one user admitted.
“Also kinda remember getting into a feud with them on here.”
One user also pointed out that the last remaining Blockbuster, located in Bend, Oregon, managed to outlive Redbox.
Redbox was acquired by Chicken Soup for the Soul Entertainment (CSSE) in 2022 and became one of the company’s flagship video-on-demand streaming services.
At its peak, CSSE operated more than 20,000 DVD rental kiosks across the country.
The company’s filing means that the company’s more than 1,000 employees will be laid off, per The Wall Street Journal.
It was also reported by Deadline that many employees at CSSE hadn’t received their paychecks and had medical benefits cut in late June.
Also Read: This Massive Mall Retailer Is Now Closing In California
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