Big Lots to Close Dozens of Stores as Bankruptcy Looms
Discount retailer struggles with financial woes and dwindling consumer spending
Company plans to shut down up to 40 locations in 2024
Discount retailer Big Lots has announced plans to close between 35 and 40 stores this year, marking a significant increase from its previous store closure plans. The company, known for its wide selection of household goods and home decor at low prices, has been grappling with worsening financials and a tough consumer spending environment.
In a public filing released in June, the Columbus-based retailer stated that it would close the stores while only opening three new locations. Previously, Big Lots had planned to close 20 to 30 stores. The company's decision to close even more stores highlights the challenges it faces in the current economic climate.
Big Lots has been struggling with declining sales and profitability in recent years. The COVID-19 pandemic and subsequent inflation have further squeezed its margins, leading to substantial losses. The company has also faced increased competition from other discount retailers such as Dollar General and Walmart.
In addition to store closures, Big Lots has also been considering bankruptcy as part of its efforts to reduce its debt and improve its financial position. The company has been in talks with potential lenders about securing financing to avoid bankruptcy, but those discussions have not yet resulted in an agreement.
The planned store closures will impact Big Lots' employees and customers in the affected areas. The company has not yet disclosed which stores will be closed, but it is likely that locations with poor sales performance or high operating costs will be targeted. Customers will need to find alternative options for their shopping needs, while employees may face job losses or transfers to other stores.
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