2 iconic retailers closing all stores in Chapter 11 bankruptcy

According to The Street, When a retailer is on the verge of bankruptcy, the signs often become visible. Shelves get bare, inventory becomes unusual, and whispers of unpaid bills spread. This was the case with companies like Bed Bath & Beyond and JC Penney, which experienced significant financial troubles before filing for bankruptcy. However, the sudden Chapter 11 bankruptcy filing of Badcock Furniture in July came as a surprise to many, including its loyal customers and employees.

Customers React to Badcock’s Unexpected Bankruptcy

The filing left many Badcock customers frustrated and angry. They took to social media, sharing their disappointment. One customer commented on Facebook, “I signed my paperwork Tuesday bankrupt Wednesday. Tell me someone didn’t know something!! Bankruptcy is a process.”

Employees at Badcock stores were equally shocked by the news. The Bonifay, Florida location posted an emotional message on Facebook, saying, “We found out Tuesday afternoon, after 120 years, Badcock Home Furnishings and more will be closing ALL stores. Yes, EVERY store. Like you, we are shocked and overwhelmed. We feel like a family member has died.”

Also read: Another key healthcare chain files Chapter 11 bankruptcy

The Conn’s Acquisition: A Fatal Merger?

In 2022, Conn’s, a struggling retail chain, acquired Badcock, a move that seems to have accelerated both companies’ downfalls. According to the Bonifay store’s Facebook post, “What we didn’t know, was that Conn’s was already a sinking ship before acquiring Badcock. We have thought of Badcock as the little lifeboat, floating out in the big ocean. As Conn’s sunk deeper and deeper, they grabbed ahold of Badcock, sinking the little lifeboat with the big ship.”

Initially, when Conn’s filed for Chapter 11 bankruptcy, some stores were slated to stay open, but that has changed. Conn’s and Badcock are both closing all their stores by the end of October. Liquidation sales are underway, and while deliveries are still being made, financing has been discontinued.

A Proud History Coming to an End

Badcock Furniture, a company with a rich 120-year history, was founded in 1904 by Henry Stanhope Badcock, an English immigrant who opened the first store in Mulberry, Florida. At the time of the bankruptcy filing, Badcock operated 380 stores in eight states, and Conn’s ran over 170 stores in 15 states. The combined workforce of both companies included nearly 4,000 full-time employees and 150 part-time workers across their 553 retail stores and 22 distribution centers.

What’s Next?

Conn’s has not yet announced what will happen to its two brands after the liquidation sales are complete, though any remaining assets will likely be sold at auction. It’s possible that a buyer could revive one or both brands in some form.

Also read: Essential retailer closes more stores in Chapter 11 bankruptcy

For now, the proud legacy of Badcock Furniture will come to a close by Halloween, but most stores will shut their doors much earlier as inventory dwindles. Employees who stay on until the final day have been promised retention bonuses by the bankruptcy court.