HIGH POINT— As the Badcock Home Furniture &more tale comes to an end, some of the former independent shop owners of the Top 100 retailer are writing the first chapters of what will happen to them, while many of its former dealers are joining up with new businesses.
Some Badcock and parent firm Conn’s HomePlus stores are reopening under new identities as liquidations come to an end as part of store closures.
While some dealers are reopening under their own names, many with fewer storefronts than before, and are collaborating to figure out the things they never had to worry about before, like logistics, product sourcing, and other operational aspects that were handled as part of their previous agreements, others have already joined forces with Royal Furniture and Queen City Audio Video & Appliances.
“We are capable of running a furniture store at a fairly high level. According to Johnston, who currently owns seven Johnston Signature Furnishings locations, “the majority of the Badcock dealers did a tremendous job of that.” For us, the situation is different in terms of purchasing, logistics, understanding the other side of the business, forecasting, and other things.
“We are communicating informally with best practices and attempting to find the best foot forward as a loose association, even though we aren’t necessarily going together as a formal entity.”
Additionally, they are not bound together even though they are working together because each of them has autonomy in the end.
Pridemore, whose new brand is called Hometown Furniture, stated, “Everyone is going out in their communities under different names, different brands, and carry different products.” “The majority will move in the direction of that middle line, but some will move slightly upward for certain margins and downward for promotional volume.”
Ball, who has partnered with Pridemore and Hometown Furniture, stated that although it has been challenging, the team has come together to find the strength to continue. “The dealers are the best aspect of the dealer environment. We wouldn’t have anyone if we didn’t have each other,” he stated. “The fact that we collectively combined our resources, intellect, ideas, and choices.” Without the collaboration of this group of people, it would be nearly impossible. I believe the gang has a lot of strength.
The days ahead are exciting, but they’re also a period of conflicting feelings, according to Stafford, who currently runs Stafford Home Furniture stores.
“We’re thrilled. Anxiety and fear of the unknown were prevalent. After working in a highly controlled setting, we were forced to perform tasks that Badcock had previously handled for us, such as purchasing, inventory control, and point of sale systems,” he stated. “We’ve gone through our grieving phases. It’s comparable like losing a family member. Many of your dealers are spread out and are only now realizing what has happened.
Even while they will remember the majority of their time with Badcock with fondness, they all agree that things changed after Franchise Group acquired the business in 2021, and it continued to decline when FRG sold it to Conn’s in late 2023. The merchants cited a number of issues, including a drop in their commission structure, more stringent delivery fee limitations, the inability to shut down unprofitable outlets, and a breakdown in communication.
For me, the last two years have been the most disheartening. We were all in the same company, so it was like family, and we had a wonderful bond,” Stafford remarked. They chose the incorrect business partner when this thing sold out more than two years ago, but I don’t have any animosity toward them. Our bells were going off from the beginning when we experienced things like losing operating bonuses, having our delivery fees capped, and having to sell off warehouses and physical assets. In essence, that is what led us down this path.
Johnston continued, “I think that since the Badcock family sold us, we’ve had a terrible culture, and it’s been really hard to get things done and makes it hard to go to work every day when you don’t enjoy what you’re doing.”
The quartet claimed that since they are beginning over, the fun has returned. According to Ball, numerous industry associations and vendors have been crucial in their assistance as they turn the page.
“I would want to express my gratitude to a few of the vendors we have worked with over the years. Their assistance has been invaluable; Best, for instance, has taken the initiative. Cheers/Manwah, those folks have taken us under their wing in terms of schooling. With the stuff we don’t know, Jackson Catnapper, Bo Morrison, Kevin Gaughan, Jamie Minshew, and Scott Woodham at Ashley are assisting us,” Ball stated. “These guys came through for us when we needed a lot of help and not many people from the previous organization stepped up.”
“We have been mentored by the Home Furnishings Association and Nationwide, two reputable organizations, who have taught us how to obtain appliances, floor samples, various financial services, payment procedures, and point-of-sale systems,” he added. “They have really stepped up.” It is really important to have those partners.
Pridemore added, “It’s a process of learning.” In an attempt to understand where such negotiating tools are used, we have visited manufacturing facilities and distribution hubs. Although there is a significant learning curve, I believe we are handling it fairly well.
Stafford expressed his optimism that they can achieve greater success on their current course.
It’s thrilling. The generosity and readiness of all the manufacturers and suppliers to assist us has amazed me,” Stafford remarked. Some of our merchants have taken the lead in establishing connections and guiding us to the necessary destination. We will be alright. This will be a blessing for us when we look back.
