According to a report from Bloomberg on Tuesday, Furniture retailer Conn's (NASDAQ:CONN) is readying a potential bankruptcy filing as the company faces sales declines and struggles to integrate a rival chain.
Bloomberg, citing sources, said Conn's could file for Chapter 11 protection within the coming weeks, although the talks aren’t final and plans could change.
Conn’s has reportedly sought financial and operational assistance, working with advisers from Houlihan Lokey Inc. and Berkeley Research Group.
The company acquired the home goods retailer W.S. Badcock LLC from Franchise Group Inc. last year in an effort to expand its store footprint and consumer reach. However, it has faced three fiscal years of losses as customers cut back due to the rising costs.
Conn's shares plunged more than 36% Tuesday. It is currently trading at $0.6576, down more than 81% in the last 12 months.