Why is Conn's closing its stores? 2023 acquisition put immense pressure on retail chain

In Arizona, Conn's operated 12 stores, including locations in Phoenix and Tucson.

PUBLISHED JUL 26, 2024

Conn's has been a presence in Arizona since its expansion in 2012.

Phoenix, Arizona: Conn's, the retail chain, has announced the closure of its stores in Arizona. This decision is part of a broader move to shutter 106 outlets across the US, affecting both Conn's and Badcock brands. The closures are attributed to the company's financial struggles, including a 7.8% annual revenue decline and mounting debt, which led to Conn's filing for Chapter 11 bankruptcy in Texas citing financial difficulties, including liabilities estimated between $1 billion and $10 billion. Texas alone hosts 85 stores, making up 43% of Conn's total locations.

A Conn's Clearance Center in Huston. Texas alone hosts 85 stores, making up 43% of Conn's total locations.

In Arizona, Conn's operated 12 stores, including locations in Phoenix and Tucson. The company has been a presence in the state since its expansion in 2012. However, the recent financial downturn and competition pressures have forced the company to reassess its operations. The closure of these Arizona stores is part of a larger strategy to reduce underperforming outlets and streamline operations.

The company's CEO, Theo Wright, described the closures as a necessary step in addressing the company's financial challenges and focusing on more profitable locations. The liquidation process is expected to continue through the end of October 2024, impacting numerous employees and local customers who frequented these stores.

In 2023, Conn's acquired Badcock Home Furniture, significantly expanding its store count. However, this acquisition has also contributed to financial strain due to integration costs and market challenges.