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Discount retailer Big Lots plans to close “35 to 40” stores by the end of the year, according to a filing last month with the Securities and Exchange Commission.
In A 280-page document, The company said inflation has led consumers to cut spending, raising “significant doubts about the company’s ability to continue operating.”
Ohio-based Big Lots operates more than 1,300 stores across 48 states. Press release regarding June performance. Big Lots last month reported a net loss of $205 million for the first quarter of fiscal 2024, which ended May 4.
Sales decreased 10.2% compared to the same period last year.
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The Big Lots logo appears on a shopping cart in front of a Big Lots store on June 7, 2024 in Hercules, California. (Justin Sullivan/Getty Images/Getty Images)
“While we made significant progress improving our business operations during the first quarter, we fell short of our sales targets primarily due to continued declines in consumer spending among our key customers, particularly on higher-priced items,” Big Lots president and CEO Bruce Thorne said in a statement.
“We remain focused on weathering the current economic cycle by controlling what is controllable. Looking ahead, we are taking aggressive steps to drive positive same-store sales growth through the remainder of this year and into 2025 and sustain year-over-year gross margin improvement through progress on five key initiatives.”
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The discount retailer reported first-quarter profit that fell short of analysts’ expectations, with net sales of $1.009 billion compared with $1.124 billion in the same period last year. (Justin Sullivan/Getty Images/Getty Images)
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| big | Big Lots Co., Ltd. | 1.05 | -0.14 | -11.96% |
Big Lots employs 35,000 people, according to its corporate website. Its mission is to help customers “Live Well and Save Well” by offering great deals on everything from home goods, furniture, décor, pet supplies and seasonal items.
The retailer is set to be in the red from 2022 onwards and is relying on dwindling cash. New York Post, Bankruptcy fears grow.
A customer shops at a Big Lots store on June 7, 2024, in Hercules, California. (Justin Sullivan/Getty Images/Getty Images)
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Big Lots did not respond to FOX Business’ request for comment. The company plans to open three new stores this year but has not yet released a list of the dozens of stores it will close.
