Introduction
Conn's, Inc. filed for Chapter 11 on July 23, 2024, after a stretch of weak demand, tightening liquidity, a financing effort that never closed, and a costly push to absorb W.S. Badcock. Retail revenue had already fallen 8.3% in the fiscal year ended Jan. 31, 2024.
The case did not end in a turnaround. It became a wind-down covering Conn's HomePlus, Badcock Home Furniture & More, nine other affiliated debtors, hundreds of stores, and large consumer-loan portfolios.
This article covers why Conn's filed, what happened in the case, how the plan treated stakeholders, and which details to verify in current court filings.
Key Takeaways
- Conn's and 10 affiliates filed July 23, 2024, in the Southern District of Texas (Case No. 24-33357).
- The plan was confirmed July 21, 2025, and took effect July 31, 2025.
- Jefferson Capital bought the main receivables portfolios in December 2024.
- Recoveries vary by claim class, and customer payment questions need account-specific answers.
- Post-confirmation activity continues, so check the docket for current status.
What happened in Conn's Chapter 11 filing?
The petition
Conn's, Inc. and 10 affiliates filed in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, before Judge Alfredo Rey Perez. The lead case number is 24-33357.
The debtors were:
- Conn's, Inc.
- Conn Appliances, Inc.
- CAI Holding, LLC
- Conn Lending, LLC
- Conn Credit I, LP
- Conn Credit Corporation, Inc.
- CAI Credit Insurance Agency, Inc.
- New RTO, LLC
- W.S. Badcock LLC
- W.S. Badcock Credit LLC
- W.S. Badcock Credit I LLC
At filing, the company reported 553 corporate and dealer stores (310 of them dealer-owned), 22 distribution and service centers, six corporate offices, and about 3,800 employees in 15 states.
Official Form 201 lists $2.44 billion in total assets and $1.95 billion in total debts. Those figures use financial data as of Jan. 31, 2024, not a petition-date estimate. The first-day declaration separately cites roughly $530 million of funded debt and about $200 million owed to trade and other general unsecured creditors.
What Conn's asked the court for
The debtors sought authority to:
- Run going-out-of-business sales
- Reject or assign leases
- Obtain a debtor-in-possession (DIP) financing facility
- Sell assets
- Wind down under court supervision
How this differs from an ordinary closure
A Chapter 11 filing adds court structure that a simple store closure lacks:
- An automatic stay pauses most collection against the debtor
- The court oversees asset sales and lease decisions
- Creditors file claims by a deadline
- A confirmed plan sets who gets paid and in what order
Why did Conn's file for Chapter 11?
Weak demand and heavy reliance on credit
For the fiscal year ended Jan. 31, 2024, same-store sales fell 16.2%. Management blamed lower discretionary spending on home-related products. The company's first-day declaration also pointed to pulled-forward pandemic demand, inflation, and higher interest rates.
Census Bureau data shows the broader category slipping too. Annual sales at U.S. furniture and home-furnishings stores fell from about $136.8 billion in 2022 to about $125.0 billion in 2024. That series covers the whole industry, not Conn's or appliances alone.
Conn's depended on its own credit program. In-house financing rose from 51.0% of retail sales in fiscal 2022 to 61.3% in fiscal 2024, as third-party financing slid from 17.7% to 14.6%. That meant Conn's carried more of the credit risk itself.
Higher borrowing costs and leases
Interest expense jumped from $36.9 million in fiscal 2023 to $81.7 million in fiscal 2024, which the company tied to higher average debt and higher rates. The Federal Funds Effective Rate averaged 1.69% in 2022 and 5.14% in 2024, per Federal Reserve data.
Operating lease liabilities stood at $202.1 million as of Jan. 31, 2024. Lease rejection and store closures became central tools in the case.
The Badcock acquisition
Conn's closed the W.S. Badcock deal on Dec. 18, 2023. Badcock contributed $68.4 million of fiscal 2024 revenue, but integration meant overlapping stores and added costs just as the retail market softened. Conn's own filings flagged integration risk.
Failed financing and sale efforts
According to the first-day declaration, a December 2023 financing effort did not close. Conn's hired BRG in May 2023 and Houlihan Lokey in June 2024, and it obtained an additional $15 million under a JPMorgan amendment.
Talks with lenders and potential stalking-horse buyers produced no better option, so management concluded an orderly wind-down would maximize value. That is the company's account, not an independent finding.
Other distress signals followed. Conn's said revolving-credit refinancing work delayed its April 2024 Form 10-Q. After the petition, Nasdaq set a trading suspension for Aug. 6, 2024.
Conn's Chapter 11 case timeline
| Date | Event |
|---|---|
| June 26, 2024 | Store-closing sales process began, per the GOB motion |
| July 23, 2024 | Chapter 11 petitions and first-day motions filed |
| July 24, 2024 | DIP facility entered; first hearing on store-closing relief |
| Aug. 6, 2024 | Nasdaq trading suspension |
| Oct. 2, 2024 | Asset purchase agreement with Jefferson Capital Systems |
| Oct. 7, 2024 | General proof-of-claim bar date |
| Dec. 3, 2024 | Jefferson portfolio purchase closed |
| Dec. 12, 2024 | Notice of bidding process for additional receivables and ABS residuals |
| May 19, 2025 | Disclosure statement filed |
| July 3, 2025 | Third Amended Joint Plan filed |
| July 21, 2025 | Confirmation order entered |
| July 31, 2025 | Plan effective date |
| Aug. 30, 2025 | Administrative-expense bar date |
| Sept. 2026 | Distribution Trust order on adversary-proceeding procedures |
Voting and confirmation
Under the Third Amended Plan, claim classes broke down as follows:
- Classes 1–3 (other secured, other priority, and prepetition ABL secured): unimpaired and deemed to accept
- Classes 4–6 (second-lien, third-lien, and general unsecured): impaired, voted, and accepted
- Classes 7–9 (intercompany claims, §510(b) claims, and existing equity): deemed to reject
Latest status
The plan is effective and the Distribution Trust is active. A final case-closing order, completed dissolution, and confirmed final store-closure date are not readily available on the public docket. Check the docket before treating any of these as settled.
What happened to Conn's assets, stores, and creditors?
Stores and operations
The going-out-of-business motion covered all 553 retail locations, and the confirmed plan is a wind-down and distribution plan rather than a retail reorganization. Available case filings do not show a continuing Conn's HomePlus or Badcock retail operation.
The receivables sale
Jefferson Capital disclosed buying roughly $428 million of Conn's installment-loan receivables, about $139 million of Badcock receivables, and a non-performing portfolio of 697,936 accounts with $1.5 billion nominal face value. The deal closed Dec. 3, 2024, for about $245 million in net cash. Jefferson also hired 197 former Conn's employees.
Those are purchaser disclosures, not creditor recoveries. Public filings do not establish a buyer for real estate, leases, or intellectual property, or the outcome of the later ABS process.
Projected recoveries
The May 2025 disclosure statement gave estimates, not payments:
- Class 4 second-lien claims (about $101.5 million): 30% to 73%
- Class 5 third-lien claims (about $50 million): 0%
- Class 6 general unsecured claims (about $375.2 million): 1%
Those estimates rest on assumptions and allowed claim amounts. One class's outcome says nothing about the others, and final recovery percentages have not been reported in available court filings.
The Distribution Trust
The plan creates a Distribution Trust to reconcile claims and make distributions from remaining estate assets. Timing and final recoveries depend on claim disputes, litigation, and asset collections. Later court orders show that trust proceedings are ongoing.
The Texas Comptroller dispute
The Texas Comptroller asserted a sales and use tax claim of $16,282,355.36 plus $594,894.09 in interest. Conn's objected and disputed the calculation. Court filings show an allegation and an objection, not a settlement or final ruling.
What the case means for customers, creditors, and researchers
Customers
Bankruptcy alone does not tell a customer whether payments continue, whether a balance is discharged, or how repossession, refunds, warranties, returns, and gift cards are handled.
Jefferson bought identified portfolios, but that does not make it the current payee for every account.
Check your contract, official notices, and any servicing letters. For specifics, ask a qualified attorney.
Creditors and suppliers
- Confirm which debtor entity you dealt with.
- Review the bar dates: Oct. 7, 2024 for general claims and Aug. 30, 2025 for administrative expenses.
- Check your claim status in the claims agent's register.
- Track how your class is treated under the plan.
- Keep invoices, contracts, delivery records, and security documents.
Employees and former dealers
Review court notices for wage or benefit claims, dealer relationships, lease issues, and releases.
Federal law gives priority to qualifying employee compensation claims earned within 180 days, up to a statutory cap. Covered employers generally owe 60 days' notice before a plant closing under the Department of Labor's WARN guidance. Neither point is a finding about Conn's compliance.
Researchers, advisors, and investors
To follow a case end to end, track:
- Petitions and schedules
- Sale motions and claims registers
- Disclosure statements and plan amendments
- Confirmation orders and distribution reports
BankruptcyData is one resource for that work. Its platform connects filings, court activity, stakeholders, transactions, timelines, and historical outcomes. API access and licensed datasets suit teams that want to automate monitoring or analytics. It does not provide legal advice or consumer debt relief.
Frequently Asked Questions
Is Conn's still in business?
As a retailer, no. Case records show store-closing sales at all 553 locations and a confirmed wind-down plan. The legal estate and Distribution Trust remain active.
Who bought out Conn's?
No buyer took over the whole company. Jefferson Capital Systems bought the Conn's and Badcock receivables portfolios. B. Riley Retail Solutions was retained as store-closing consultant.
Do I have to pay Conn's after bankruptcy?
Bankruptcy alone does not settle your obligation. Review account notices, identify your current servicer, and ask a qualified professional about your contract.
What happens if I don't pay my Conn's bill?
Possible consequences include late fees, collection activity, credit reporting, or enforcement of contract rights, depending on your terms. CFPB guidance explains when collectors may report debts.
