Burlington to buy 15 Conn’s Retail Leases in Bankruptcy

A recent retail bankruptcy is paving the way for a New Jersey-based department store.

Burlington has acquired over a dozen real estate leases, including 10 in Texas, that were formerly held by furniture and appliance retailer Conn’s, the Houston Business Journal reported.

The Woodlands-based Conn’s, led by CEO Norman Miller, filed for bankruptcy in July, forcing it to shut down all 174 of its HomePlus stores and 380 Badcock Home Furniture stores.

Burlington, headed by CEO Michael O’Sullivan, bid over $6.65 million for 15 Conn’s leases across five states, in a sale facilitated by the U.S. Bankruptcy Court for the Southern District of Texas this week. Factoring in cure amounts, the total acquisition cost is estimated to be a little over $7 million. The Texas properties are in Amarillo, Dallas, El Paso, Laredo, McCallen, San Antonio and Texas City.

Burlington’s aggressive real estate moves coincide with the chain’s broader growth strategy, which includes opening more than 100 stores per year over the next five years.

In addition to Conn’s, Burlington has capitalized on the closure of Bed Bath & Beyond, acquiring 64 of its former leases after the home goods retailer shuttered nearly 900 locations following its own bankruptcy filing.

As other big-box retailers file for bankruptcy, including Big Lots and 99 Cents Only, Burlington is positioning itself to continue capitalizing on the shifting retail real estate landscape.

So far, 61 Conn’s leases across the Southeast U.S. have been auctioned. The soon-to-be defunct retailer, which was founded in 1890 and sold furniture and appliances to customers via in-house credit, has chosen to reject 51 unexpired leases. When Conn’s filed for bankruptcy over the summer, it held 553 retail stores, 22 distribution centers and six corporate offices.

These are the leases Burlington is buying:

• 724 East Expressway Highway 83, McAllen, Texas

• 11650 Bandera Road, San Antonio, Texas

• 3143 Southeast Military Drive, San Antonio, Texas

• 4351 DFW Turnpike, #300, Dallas, Texas

• 6101 Gateway West, El Paso, Texas

• 2420 Bob Bullock Loop, Laredo, Texas

• 7333 West Thomas Road, Phoenix, Arizona

• 2510 South Soncy Road, Amarillo, Texas

• 3185 East Tropicana, Las Vegas, Nevada

• 2201 Civic Center Drive, North Las Vegas, Nevada

• 3405 Palmer Highway, Texas City, Texas