Conn's

Conn's, Inc.

File:Conn's HomePlus® logo.svg
Company type	Public
Traded as	Template:OTC Expert Russell 2000 component
Industry	Retail
Founded	1890 (1890) (originally Eastham Plumbing and Heating Company) 1934 (1934) (as Conn's)
Founder	Edward Eastham
Defunct	Template:End date and age
Fate	Bankruptcy and liquidation following sales decline
Headquarters	The Woodlands, Texas , U.S.
Number of locations	146 (2021)
Key people	Carol Washington Conn Sr. (namesake) Norm Miller (CEO)
Products	Consumer electronics, Appliances and Furniture
Revenue	Decrease US$1.2 billion (2023)
Operating income	Decrease US$-125 million (2023)
Net income	Decrease US$-77 million (2023)
Number of employees	4,260 (Jan. 2021)
Subsidiaries	Badcock Home Furniture &more
Website	conns.com

Conn's, Inc. was a retail company based in The Woodlands, Texas, specializing in furniture, mattresses, electronics, and household appliances. The chain operated stores in numerous states such as Texas, Alabama, Arizona, Colorado, Georgia, Louisiana, Mississippi, Nevada, Florida, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, and Virginia. Within Texas, its primary markets included the Greater Houston area, Dallas/Fort Worth Metroplex, San Antonio, El Paso, Corpus Christi, Southeast Texas, and South Texas.

History

The company traces its origins to 1890 when Edward Eastham founded the Eastham Plumbing and Heating Company in Beaumont, Texas. In 1931, the First National Bank of Beaumont acquired the business and renamed it Plumbing and Heating, Inc. Carol Washington Conn Sr., who joined the firm in 1933 and became owner by 1934, subsequently rebranded it as Conn Plumbing and Heating Company.

By 1937, the business had diversified to include refrigerators and gas ranges in its product lineup. The second store opened in Beaumont in 1959. After returning from military service in 1953, C.W. Conn Jr. established Appliance Parts and Service in 1962 to improve customer support and co-founded Conn Credit Corporation in 1964 to offer retail credit financing—both integral to the company's operational model.

From 1966 to 1976, Carlton Russell Sr. held the roles of president and COO during which time the chain expanded to four stores generating $4 million in revenue. The first expansion beyond Texas occurred in Louisiana in 1969. Throughout the 1970s and early 1980s, Conn's continued growing its presence with new outlets across Texas and Louisiana. After the passing of Conn Sr. in 1975, Carlton Russell Jr. assumed the position of chairman.

Conn's entered the Houston market in 1983 and by 1993 had achieved $100 million in sales while also expanding into San Antonio. Under Thomas Frank Sr.'s leadership beginning in 1994, revenues exceeded $200 million by 1997. In 1998, with financial support from The Stephens Group, Inc., the company restructured to enable further growth across Louisiana and Texas during the early 2000s.

During the 2010s, Conn's significantly broadened its geographic footprint by entering markets such as Arizona (2012), Colorado, Tennessee, South Carolina, and Mississippi (2014), expanding to roughly 125 retail stores.

Conn's went public on November 25, 2003; it was listed on NASDAQ under the ticker CONN with an initial public offering of approximately 4.6 million shares. Its multifaceted business approach encompassed not only retail sales of appliances, electronics, furniture, and mattresses but also included service contracts, distribution logistics services, financing through its credit division, insurance offerings, and related services.

In December 2023, Conn's acquired Badcock Home Furniture & More from Franchise Group—adding nearly 380 additional stores to its portfolio and increasing total locations to close to 500.

Despite this expansion effort, by mid-2024 the company's financial health worsened considerably due to inflationary pressures coupled with declining sales compounded by integration difficulties related to the Badcock acquisition. In July 2024 Conn's announced it was considering filing for Chapter 11 bankruptcy protection while planning to shut up to 106 stores across both brands. On July 23rd it officially filed for bankruptcy citing liabilities estimated between $1 billion and $10 billion. By late July liquidation commenced for nearly all of its approximately 600 locations with final closures targeted for October 31st. Following bankruptcy filing Nasdaq delisted Conn’s shares on August 6th.

Most stores had ceased operations before complete closure; however some outlets remained open in Tennessee until late October of 2024.

Conn's Customer Service Controversy

On July 3, 2014, Conn's became the subject of a feature in The New York Times column “The Haggler,” which sparked significant negative reactions on social media under the hashtag "#talktothehaggler". A subsequent article published on July 19 further condemned the company’s approach to customer service. Later, on November 9, 2014, the column revealed that Conn's had not responded to questions regarding its credit policies for high-risk clients amidst an active lawsuit.

The coverage emphasized that the bonuses awarded to CEO Theodore M. Wright, COO Michael J. Poppe, and CFO Brian E. Taylor—who were defendants in the legal case—were linked to operating income targets. Wright’s top bonus of $850,000 was contingent upon achieving $165.8 million in operating income; Conn's came close with $162 million, resulting in an $820,000 payout to him. Additionally, the complaint pointed out that Wright and Poppe sold company shares in 2013 at allegedly inflated stock prices, earning $1.9 million and $2.6 million respectively. This connection between executive remuneration, stock transactions, and the firm’s aggressive credit practices raised questions about corporate governance and financial integrity.