(Bloomberg) -- Furniture retailer Conn’s Inc. is preparing for a potential bankruptcy filing as it faces sales declines and struggles to integrate a rival chain, according to people with knowledge of the plans. 

Conn’s, which sells discount home goods primarily to lower-income consumers, may file for Chapter 11 protection within the coming weeks, said the people, who asked not to be identified discussing confidential business information. Talks aren’t final and plans could change, they added. 

A representative for the company didn’t immediately comment. 

The Woodlands, Texas-based Conn’s has been working with advisers from Houlihan Lokey Inc. and Berkeley Research Group for financial and operational assistance, Bloomberg previously reported. 

Conn’s last year purchased home goods retailer W.S. Badcock LLC from Franchise Group Inc. in an effort to expand its store footprint and consumer reach, but has faced three fiscal years of losses as pinched customers cut back to afford the rising costs of necessities. 

The company’s shares have fallen 77% this year to close on Monday at $1.04. They dropped an additional 18% to 85 cents in post-market trading after Bloomberg reported on the potential filing. 

Last month, Conn’s delayed filing its quarterly financial report amid ongoing efforts to refinance its revolving credit facility. That same day, it also said it borrowed $25 million under a term loan agreement and would also issue warrants. 

(Updates with share move in sixth paragraph.)

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