Sometimes a retailer shows clear signs that it's headed for bankruptcy: shelves start to empty and inventory starts to become odd.
For example, in the run-up to its bankruptcy filing, Bed Bath and Beyond went through a series of financial problems that were well-publicized. The same was true for JC Penney, which not only had low inventory but was known to have fallen behind on paying its bills.
Related: Crisis-hit gas station chain files for Chapter 11 bankruptcy
That was not the case for Badcock Furniture, a company that has been in business for more than 120 years and filed for Chapter 11 bankruptcy in late July.
The filing shocked and angered customers, many of whom shared their anger on facebook.
“I signed my papers on Tuesday and by Wednesday I was bankrupt. Tell me someone didn't know something! Bankruptcy is a process,” one customer wrote.
But local stores didn't know. Badcock's branch in Bonifay, Florida, posted an emotional farewell on facebook detailing how shaken employees were.
“We learned Tuesday afternoon that after 120 years, Badcock Home Furnishings and more will be closing ALL of its stores,” the post said.
“Yes, ALL stores. Like you, we are shocked and overwhelmed. We feel like a family member has died. We have shed many tears over the past few days and have prayed harder than ever.”
Badcock was purchased by Conn's in 2022 and that was the beginning of the end.
Image source: TheStreet
Conn's and Badcock are closing
“What we didn't know was that Conn's was already a sinking ship before we acquired Badcock,” the Bonifay stores message continued. “We thought of Badcock as a little lifeboat floating in the big ocean. As Conn's sank lower and lower, they grabbed Badcock and sank the little lifeboat along with the big ship.”
Initially, when the Chapter 11 bankruptcy was announced, some Conn's stores were set to remain open. That has changed, according to Conn's website. “Yes, all Conn's stores are closing,” the company wrote.
The same goes for Badcock stores.
Conn's and Badcock have been running sales at all of their stores. They are still shipping items, but have stopped offering financing.
Prices listed on the company's website are the full retail price. Discounts appear after items are added to the shopping cart.
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Badcock Furniture has a proud history
Conn's and Badcock will close all of their stores by the end of October. Most stores will close well before then as the company consolidates merchandise as it runs out of inventory.
At the time of the Chapter 11 bankruptcy filing, Badcock had 380 stores in eight states: Florida, Alabama, Mississippi, Tennessee, North Carolina, South Carolina, Georgia and Virginia. Conn's operates more than 170 stores in 15 states.
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In the parent company's Chapter 11 filing in U.S. Bankruptcy Court in Corpus Christi, Texas, Conn's said it employed about 3,800 full-time and 150 part-time employees in the United States. The two brands operate 553 retail stores in 15 states and 22 distribution and service facilities.
Conn's has not said what will happen to its two brands once liquidation sales end and the stores close. The remaining assets will likely be sold at auction, and it's possible a buyer could bring back one or both brands in some form.
Badcock's closure is especially sad given the company's deep history.
“Henry Stanhope Badcock founded W.S. Badcock Corporation in 1904. An immigrant from England, Henry founded the first Badcock store in Mulberry, Florida,” according to the company's website.
That story will end, at least for now, by Halloween, but probably much sooner in most places. The company has received permission from the bankruptcy court to offer retention bonuses to workers who stick around until the final day.
