ORLANDO, Fla. – Big Lots is dealing with serious financial challenges that have led the company to plan the closure of 315 stores across the country.
Last month, the company had expected to close 35 to 40 stores in 2024. But mounting debts and declining sales—reflected in a nearly 10% drop in Q1 2024 revenue compared to the previous year—have forced more drastic measures.
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The news of the almost 10-fold increase in store closings came in a recent form 8-K filing (August 2nd) with the Securities and Exchange Commission.
The closures will hit California the hardest, with 75 stores set to shutter, followed by Florida (26 stores), Arizona (18 stores), and Washington (also 18 stores). Broward County will lose five stores; Palm Beach County three stores; and Central Florida (Orange and Volusia counties) will lose four stores.
The closures are part of Big Lots’ broader efforts to stabilize its finances by reducing operational costs and enhancing liquidity.
The company’s troubles became more apparent after it secured a $200 million loan, but now it faces challenges in repaying the loan within the next year, increasing the risk of default. Despite implementing cost-cutting strategies and attempts to boost sales, Big Lots is struggling to regain its financial footing, raising concerns about its long-term viability.
The decision to close these stores not only reflects the retailer’s immediate need to conserve resources but also underscores the broader challenges facing many brick-and-mortar retailers when competing against e-commerce giants such as Amazon, Alibaba, eBay and Wayfair.