Major discount retailer confirms yet more store closures as it battles financial ruin and permanent closure

A POPULAR discount store with around 1,4,000 locations nationwide said it plans to close between 35 and 40 stores this year.

The announcement comes after Big Lots closed 52 stores in 2023.

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Ohio-based company announced new closings in June SEC Filing.

Big Lots reported that “high inflation” impacted consumers’ purchasing power, resulting in sufficient financial losses.

“Our net losses and use of cash in operating activities in 2022, 2023 and the first quarter of 2024, as well as our current cash and liquidity projections, raise substantial doubts about our ability to continue,” the report says.

The company’s net sales decreased by $114.5 million in the first quarter of 2023 compared to the same period a year ago.

When the stores closed last year, President and CEO Bruce Thorn said the closures were part of a multiyear plan.

Big Lots announced in late 2023 that locations in New York, North Carolina and Illinois would close.

“We continually review our store footprint to ensure we are best positioned to successfully serve our customers and our business,” a spokesperson said.

Big Lots said the closings were “consistent with standard retail pricing.”

Then a store in Leesburg, Virginia, announced it would close in April.

The location was in the Battlefield Shopping Center, 40 minutes northwest of Washington DC.

AN INDUSTRY-WIDE PROBLEM

Consumers are cutting back on spending because inflation keeps prices high.

Big Lots is just one of many retailers seeing the effects of a drop in consumer spending.

In April, The 99 Cents Only Store filed for bankruptcy and later announced plans to close all 371 stores nationwide.

The company cited rising inflation rates and the inability to maintain a profit margin as the reason for the closure.

After the closures were announced, rival Dollar Tree Inc. acquired the properties of nearly 170 bankrupt 99 Cents Only stores.

Our net losses and use of cash in operating activities in 2022, 2023 and the first quarter of 2024, as well as our current cash and liquidity projections, raise substantial doubts about our ability to continue

June SEC Filing of Large Lots

Dollar Tree has faced its own financial problems.

Its parent company, which also owns Family Dollar, has closed about 1,000 stores since 2023.

However, COO Michael Creedon said acquiring 99 Cent Stores is a profitable growth opportunity.

“The portfolio complements our existing presence and will provide us with access to high-quality real estate assets in premium retail centers, allowing us to rapidly grow the Dollar Tree brand throughout the Western United States, reaching even more customers and communities,” said he. reports SHOVEL.

An iconic toy brand has filed for bankruptcy and executives are comparing it to the demise of Toys R Us.

Walgreens announced it would close up to 25% of its more than 8,000 stores.