Conn’s Explores Possible Sale

The board of directors of Conn’s has authorized management to explore strategic alternatives including, but not limited to, a sale of the company.

Options include separating Conn’s retail and credit businesses, or slowing store openings and returning capital to investors, according to the company.

Conn’s added that, in connection with the strategic review of alternatives, its board had adopted a stockholder rights plan and declared a dividend of one right on each outstanding share of the company’s common stock. The intention of the rights plan, Conn’s asserted, is to enable management and the board to explore strategic alternatives while reducing the likelihood that any person or group would gain control of the company through open market accumulation or otherwise without appropriately compensating all of the firm’s shareholders. The rights plan will expire on October 5, 2015, the company noted.

Conn’s stated that it had engaged BofA Merrill Lynch as financial advisor and Vinson & Elkins LLP as legal counsel to assist in the process.

“Our strategic initiatives remain on track with new store openings and the penetration of new geographic markets, and we remain committed to our current strategic plan,” Theodore Wright, Conn’s chairman and CEO, said in announcing the strategic review. “While we remain confident in the company’s future prospects and have ample capital and liquidity to execute our business plan, we have decided to conduct a strategic review and explore options to accelerate the realization of value for our stockholders.”