Conn's (NASDAQ:CONN) is reportedly preparing for a potential bankruptcy filing amid declining sales and difficulties integrating a rival chain, according to a Bloomberg report on Tuesday. Following the news, Conn's shares plummeted over 28% on Tuesday.

Sources cited by Bloomberg indicated that Conn's may seek Chapter 11 protection within the next few weeks, though these discussions are not final and plans may still change.

Conn's has been seeking financial and operational support, enlisting advisers from Houlihan Lokey Inc. and Berkeley Research Group. The company acquired W.S. Badcock LLC from Franchise Group Inc. last year to expand its store footprint and consumer reach. However, Conn's has experienced three consecutive fiscal years of losses as customers have reduced spending due to rising costs.