Why Furniture Retailer Conn's Shares Are Getting Battered On Tuesday

Furniture retailer Conn’s Inc CONN, known for discount home goods, is seeing its shares plunge premarket after the news of a potential bankruptcy filing, as sales have declined and challenges integrating a rival chain persist.

The retailer, catering primarily to lower-income consumers, might seek Chapter 11 protection in the coming weeks, according to a report from Bloomberg.

Plans are not final and could change. Based in the Woodlands, Texas, Conn’s has enlisted advisors from Houlihan Lokey Inc. and Berkeley Research Group for financial and operational guidance, per the report.

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The retailer purchased W.S. Badcock LLC last year to expand its market presence but has faced three years of fiscal losses as customers cut back on spending due to rising living costs.

Conn’s shares have plummeted 77% this year. Last month, Conn’s delayed its quarterly financial report and borrowed $25 million under a term loan agreement.

Price Action: CONN shares are trading lower by 44.3% at $0.5796 in premarket at last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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