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Discount retailer Big Lots is closing more than 300 stores across the US after issuing a warning that its future is in doubt.
Big Lots will lose about a quarter of its locations after previously saying it was planning on closing about 40 locations during a quarterly earnings report. That’s when it announced a 10 percent sales drop, equating to about $205 million, in the quarter as customers were spending less.
In a subsequent regulatory filing, the company said it would increase the number of store closures to 315 as part of a loan agreement.
While a full list of the closing stores hasn’t been shared, Big Lots is detailing closing sales on its site at hundreds of its stores.
The company said it’s “taking decisive actions to operate efficiently and reviewing our store footprint on an ongoing basis to make sure we’re best positioned to serve our customers and our business,” in a statement to CNN. Shares in the company have decreased by about 90 percent this year.
A spokesperson added that most of their stores are profitable, but the retailer is closing some “underperforming” locations.
“We are confident that the steps we are taking will best position the company for the future as we return to our roots, focus on owning the bargain space, and deliver unmistakable value to our customers,” the company said.
In June, CEO Bruce Thorn stated in a press release that Big Lots missed its “sales goals” because of a decrease in consumer spending by the company’s “core customers, particularly in high ticket discretionary items.”
The regulatory filing stated there was a “significant likelihood” that the company could default on a 2022 loan and that Big Lots has “substantial doubt” that it can stay in business.
Customers reducing their spending on non-essentials hasn’t only hurt Big Lots, which has been in business for 57 years, but a number of other stores – Amazon and its fellow online shops have also pulled away business from companies with brick-and-mortar locations.
Conn’s HomePlus, which sells furniture and electronics, filed for bankruptcy after 134 years and is closing all its locations. Similarly, Bob’s Stores and 99 Cents Only Stores also failed to stay in business this year, CNN noted.
