Electronics, appliance furniture retailer Conn’s Inc. said this morning its board is reviewing options including the sale of the company.
The Woodlands-based company is also considering a separation of its retail and credit businesses. The company said it may also slow its new store openings and instead return capital to investors.
Conn’s has been rapidly growing sales, but last month, the retailer said it had to significantly increase its provision for bad debts as its customers struggled to pay their bills. Conn’s also cut its full-year profit estimate.
The stock is trading higher this morning on the announcement. No timetable has been set for the company’s review process.
Conn's said it has hired Bank of America Merrill Lynch as financial advisor and Vinson & Elkins as legal counsel.
Conn's stores sell everything from refrigerators and TVs to mattresses and lawn mowers. The company's 86 stores are located in Arizona, Colorado, Louisiana, Mississippi, New Mexico, Oklahoma, Tennessee, Texas, and South Carolina. Twelve of its stores are in the Dallas-Fort Worth area.
