Big Lots to Close Over 300 Stores Amid Financial Struggles

Big Lots, the discount retailer, has announced plans to close more than 300 locations across the United States, representing approximately a quarter of its total stores. This decision follows a warning from the company regarding its uncertain future due to ongoing financial difficulties. In June, Big Lots reported a 10% decline in sales and a staggering $205 million loss for the quarter, attributing these losses to reduced consumer spending. In a recent regulatory filing, Big Lots revealed that it would increase its store closures from an initially planned 40 to 315, as part of a revised loan agreement aimed at stabilizing its finances. The company stated that it is taking "decisive actions" to enhance operational efficiency and is continuously reviewing its store footprint to better serve customers and the business. Despite the closures, a company spokesperson noted that a majority of its stores remain profitable. However, the decision to shut down underperforming locations was deemed necessary. Big Lots expressed confidence that these measures would position the company for future success, emphasizing a return to its core focus on providing value in the bargain space. CEO Bruce Thorn previously indicated that the company fell short of sales targets due to a significant pullback in consumer spending, particularly on high-ticket discretionary items. The recent filing highlighted a "significant likelihood" of default on a 2022 loan, raising concerns about the company's operational viability as it navigates a challenging retail landscape.