Popular discount store Big Lots warned financial regulators in a recent filing that its huge losses over the past two years have raised “significant doubts about the company’s viability.”
The Ohio-based home goods retailer, which has about 1,400 stores nationwide, has seen dramatic Loss of $132 million It has been on a downward trend since 2022, but in the first three months of 2024 Daily Mail report.
Recent Quarterly Report Financial difficulties forced Big Lots executives to use up excess funds to cover the cost of the stock acquisition, according to filings with the Securities and Exchange Commission.
Big Lots told federal regulators:
The Company has concluded that based on its current cash and liquidity projections and uncertainties regarding the mitigating effects of management’s plans, it is highly probable that it will be unable to comply with the Excess Availability Covenant under the 2022 Credit Agreement and the Term Loan Facility within the next twelve months, which would raise significant doubt about the Company’s ability to continue as a going concern.
“Any failure to comply with the Excess Availability Covenants could result in an event of default and accelerate the performance of our obligations under the Term Loan Facility and the 2022 Credit Agreement,” company officials continued. “There can be no assurance that the lenders under the Term Loan Facility or the 2022 Credit Agreement will waive any failure to comply with our Excess Availability Covenants.”
Big Lots store managers said they weren’t surprised. Daily Mail Reports say the company sends out large amounts of products, but not what customers want.
The company’s shares peaked at $72.31 in 2021, but Only $1.71 on Wednesday when the market is closed for Independence Day. The stock has reportedly fallen 48% in the past month and is down 81% this year.
Big Lots’ woes come as other well-known discount stores have fallen into financial difficulties. Dollar Tree, Family Dollarand 99-cent-only stores — Announced All 371 stores were closed in April.
