Conn’s Inc. has filed a motion for Chapter 11 bankruptcy, requesting emergency relief “not later than July 24, 2024.”

The motion specifically calls for approving and authorizing its debtors to close stores, approve procedures for store-closing sales, and approve “modifications to certain customer programs.”

Those programs include the debtors’ — Conn’s — return policy and acceptance of gift certificates, the filing said.

Conn’s announced June 26 that it received a delinquency notification from Nasdaq regarding its failure to file Form 10-Q for the results from its first fiscal quarter of 2024, which ended April 30. Amid filing delays, the furniture, appliances and electronics retailer, which operates Conn’s HomePlus stores, was seeking refinancing and considering bankruptcy, Bloomberg reported July 1.

Conn’s Inc. web sales by year

Prior to the filing, Conn’s had been growing its online sales for the past five years. For its fiscal year 2024, which ended Jan. 31, its consolidated revenue declined 7.8% year over year to $1.2 billion. The company attributed that drop to a 9.1% decline in total sales and a 3.6% reduction in finance charges and other revenues.

Conn’s bankruptcy

Conn’s continues to operate and manage its properties during the bankruptcy proceedings. The company currently has about 3,800 full-time and 150 part-time employees, according to the filing. It operates 553 retail stores and 22 distribution centers across 15 states, the filing detailed.

Among the pending authorizations requested in the filing, the Conn’s bankruptcy would include “the sale or disposition of the Store Closing Assets free and clear of all liens, clams, and encumbrances.”

Conn’s Inc. is No. 568 in the Top 1000 Database. The Top 1000 ranks North America’s largest online retailers by annual web sales. Within the database, Conn’s falls under the Consumer Electronics category. It also sells furniture and mattresses, home appliances, home office products, accessories, and “seasonal items from leading global brands,” the filing said.

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