Big Lots to Close 35-40 Stores Amidst Financial Woes
Discount retailer struggling with worsening financials and tough consumer market
Company cites substantial doubt about its ability to continue as a going concern
Discount retailer Big Lots is closing 35-40 stores this year as it battles worsening financials and a tough consumer market. The company, which has struggled with profitability in recent quarters, said in a regulatory filing that it has "substantial doubt" about its ability to continue as a going concern.
"The decision to close stores is never easy, but it is necessary to ensure the long-term health of our business," said Big Lots CEO Bruce Thorn in a statement. "We are committed to serving our customers and communities, and we believe that these closures will allow us to do so more effectively."
Big Lots is not the only discount retailer to find itself in distress this year. 99 Cents Only filed for bankruptcy in April, and other retailers, such as Tuesday Morning and Pier 1 Imports, have also closed stores in recent months.
The retail industry has been hit hard by the COVID-19 pandemic, rising inflation, and a shift towards online shopping. Big Lots has been particularly affected by these factors due to its reliance on in-store sales.
The company's stock price has fallen by more than 50% in the past year. It is now trading at around $4 per share, down from a high of over $8 in early 2022.
Big Lots has been trying to turn around its business in recent months by cutting costs and improving its online sales. However, the company has not yet seen a sustained improvement in its financial performance.
The store closures will likely lead to job losses, but the company has not yet said how many employees will be affected.
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