Big Lots to Close Over 300 Stores Amid Financial Troubles
Big Lots, the discount retailer, is facing significant financial challenges and has announced plans to close over 300 stores across the United States. This represents roughly a quarter of its total store count. The closures come after the company previously warned that its future was in "substantial doubt."
Big Lots' struggles are attributed to several factors, including a decline in consumer spending, particularly on non-essential items. The company also faces stiff competition from online retailers like Amazon. These factors have led to a 10% decrease in sales and a $205 million loss for the quarter.
In an attempt to secure its finances, Big Lots has updated its loan agreement and will close 315 stores. While a specific list of closures has not been released, the company is holding closing sales at hundreds of its stores.
Big Lots claims that the majority of its stores are profitable, but it is making the "difficult decision" to close underperforming locations. The company aims to return to its roots, focus on the bargain space, and deliver value to its customers.
However, a recent regulatory filing paints a more dire picture. The filing states that there is a "significant likelihood" of a potential default on a 2022 loan and that the company has "substantial doubt" about its ability to remain operational.
Big Lots' situation reflects the broader challenges faced by brick-and-mortar retailers in the face of online competition and changing consumer habits. Several other retailers, including Conn's HomePlus, Bob's Stores, and 99 Cents Only Stores, have recently gone out of business.
The future of Big Lots remains uncertain, and the company's ability to navigate its financial difficulties and adapt to the changing retail landscape will be crucial to its survival.