retail chain big lots

Discount Retail Chain Closing More Stores, Considering Filing for Bankruptcy

The major discount retail chain Big Lots is planning to close additional stores and may file for bankruptcy. Multiple reports indicate this troubling news.

Big Lots blames inflation and reduced consumer spending. Their accelerated closure plans for this year are a result. The New York Post cites June SEC filings, revealing Big Lots will close 35-40 stores this year. This follows 52 closures in 2023.

Financial documents from the Ohio-based company show plans to open 3 new stores in 2024. However, the locations haven’t been announced yet.

Ongoing financial issues raise “substantial doubt” about their ability to continue operations. Big Lots mentioned the possibility of bankruptcy in their filing.

“There is a significant likelihood that (the company) will be unable to comply (with financial agreements)…which raises substantial doubt about the company’s ability to continue as a going concern,” Big Lots stated. They have “implemented plans to reduce costs, improve sales and enhance its financial flexibility and liquidity.”

Net sales for the company decreased by 10.2%, or $114.5 million, compared to the first quarter of last year. The downturn affects all categories, especially furniture, seasonal, and home and garden items.

Macroeconomic pressures are impacting customers’ discretionary spending, the company noted. Fewer customers are buying large-ticket items. However, there’s a bright spot: Broyhill-branded furniture is back at normal stock levels after a shortage in the first quarter of 2023.