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Big Lots to close 35-40 stores as company expresses doubts over finances
In a filing with federal regulators, discount retailer Big Lots said it plans to close 35 to 40 stores next year, while opening just three new ones.
This is because Big Lots reduced its footprint in fiscal 2023 from 1,425 stores to 1,392.
Of the 1,392 stores operated by Big Lots, the company considers 244 of them to be “underperforming.”
In its filing, the company warned that it could struggle to meet its financial obligations as it “intends to vigorously pursue its plans to increase its liquidity” and improve business performance. Closing locations could allow it to liquidate assets, as well as sell some of its real estate.
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The company added that it has “substantial doubts” about its economic future.
The announcement comes amid a sales slump. Big Lots said its net sales decreased $114.5 million, or 10.2%, in the first quarter of 2024 compared to the first quarter of 2023.
Meanwhile, its long-term debt increased by $72.2 million from $501.6 million as of Q1 2023.
The records were made after the conclusion of a 2022 credit agreement.
Big Lots did not say which 35 to 40 locations would close. Scripps News has reached out to Big Lots for additional comment.