Conn’s HomePlus Plans to Shut Down, Closure Sales to Wrap Up by Oct. 31, CEO Sworn Statement Indicates

Conn’s HomePlus, a Top 100 retailer, has announced plans to shut down as part of its Chapter 11 bankruptcy filing. CEO Norm Miller stated that the company faced challenges due to shifts in consumer behavior, macroeconomic headwinds, and liquidity pressures. Despite efforts to find a solution through negotiations with stakeholders and potential buyers, the company determined that an orderly wind down would maximize the value of its assets.

The Woodlands, Texas-based retailer cited various factors for its financial struggles, including market trends, interest rate pressures, and costs related to its merger with W.S. Badcock Corp. The company’s interest rate expense skyrocketed from $25.7 million to $81.7 million over the past three years, leading to liquidity issues.

In an attempt to address its financial situation, Conn’s worked with advisors to explore restructuring options and secure debtor-in-possession financing. However, after evaluating various financing options, the company decided to proceed with a store closure sales process, with all sales expected to be completed by Oct. 31, 2024.

CEO Norm Miller expressed confidence in the decision, stating that the debtor-in-possession facility was the best option to address the company’s near-term liquidity needs. The Chapter 11 filing marks a significant turning point for Conn’s HomePlus as it navigates through financial challenges and seeks to chart a path forward.