Conn's Mulls Strategic Options, Including Sale Of Company

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Conn's Inc. said Monday it's mulling its strategic options, including a sale of the company, a separation of its retail and credit businesses, or a slowdown in store openings and return of capital to shareholders. The Texan furniture and appliance retailer said it has engaged Bank of America Merrill Lynch as financial advisor and Vinson & Elkins LLP as legal counsel. "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," Chief Executive Theodore Wright said in a statement. The company has adopted a stockholder rights plan and declared a dividend of one right on each outstanding share. The news comes after Conn's, in its most recent quarterly earnings released in early September, missed profit forecasts and slashed its full-year outlook. Shares were not yet active in premarket trade, but are down 58% in the year to date, while the S&P 500 has gained 8%.

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