A large chain of furniture stores, Badcock Home Furniture & More, which is based throughout the United States, announced on Tuesday that it will be closing all 380 locations of its stores.
The 120-year-old chain is owned by Conn’s, a larger company that was forced to file for bankruptcy just last week. The company has more than $2 billion of bets and more overhead costs than it can reasonably keep up with.
Hundreds of Stores Closing
Badcock runs over 380 stores throughout Florida, Alabama, Mississippi, Tennessee, North Carolina, South Carolina, Georgia, and Virginia.
It has not been announced yet when the stores will finally close. For now, every location will participate in a large ‘going out of business sale’ where nearly all stores and online will discount merchandise by 30 to 50 percent.
Conn’s Going Bankrupt
Conn’s says it will need to close most of the stores to raise more liquid cash for the company.
This is a method that many companies will use when going through a large-scale bankruptcy. According to the July 23 filing, the company is in dire need of a cash infusion.
Other Chains Have Been Closed
In addition to Badcock going under, Conn’s was forced to close 71 other stores that bear its name, leaving only 100 locations open.
Conn’s is also focused on selling furniture, TVs, appliances, electronics, and mattresses.
Badcock’s Liquidation Plan
To sell the remainder of the furniture and create a quick, liquid infusion of cash, Badcock will offer furniture, such as couches and mattresses, for up to 50% off.
As well, all bedding and electronics will be up to 40% off, while appliances will be marked 30% off.
Employees Will Be Affected
Unfortunately, no consolation will be made for the nearly 3,800 full-time and 150 part-time employees that will be laid off between Conn’s and Badcocks.
Although many employees will be eligible for unemployment benefits, the majority of them will be laid off with no additional help.
The History of Conn’s
The Woodlands, Texas, headquarters has been around for over 134 years.
The company was first opened as a plumbing and heating company. It was acquired in 1933 by Carroll Wayne Conn Sr., giving it the modern name of Conn’s.
Quick Transition into Selling Furniture
After Conn Sr. had some success with the plumbing and heating services, they began selling refrigerated in 1937.
Years later, they began selling everything from couches to microwaves, bedding, and more. The company enjoyed several decades of healthy profits and community involvement.
Struggling to Make a Profit
In the past few years, more consumers have turned to online sales and cheaper stores like Ikea to purchase furniture.
Due to the ways that consumer behavior has evolved over the years, it has become more expensive for companies to continue to operate brick-and-mortar locations with lots of physical stock.
One Big Purchase To Save Sales
Although Conn’s was struggling for years to improve their profits, they decided to make a big move to gain a larger market share.
In December 2023, Conn’s announced that it was planning to buy Badcock’s as a last-ditch effort to increase sales and keep its business afloat.
Big Losses for the Company
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In an April report from the company, it was announced that by the end of 2023, Conn’s would see a loss of more than $77 million.
The company has been losing sales over the past three years, with a whopping 98% downturn since June 2021. This massive discrepancy has also shattered its stock prices, which recently fell to $0.34 per share.
Other US Retailers Are Failing
Furniture isn’t the only sector that has seen a massive downturn in sales in the past few years. Inflation rates have risen to outrageous amounts, causing consumers to be much more selective about what they purchase.
US retailers have announced the closure of as many as 2,600 stores in 2024 alone.
