BIG Lots is closing four stores in a single state, leaving customers scrambling to find other options.
The discount retailer cites inflation and a lack of consumer spending for closing dozens of underperforming stores across the country.
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BIG LOSS
Big Lots is closing four stores in Michigan, largely due to low sales.
The company, which operates more than 1,390 stores nationwide, is headquartered in Columbus, Ohio.
Big Lots currently has 46 locations in Michigan, with four stores expected to close before the end of the year.
The four store closures include:
- Kentwood, located at 4254 28th St.
- Okemos, located at 2020 Grand River Ave.
- Portage, located at 6207 S. Westnedge Ave.
- Ypsilanti, located at 2850 Washtenaw Avenue.
The company announced its decision to close stores in a filing with the U.S. Securities and Exchange Commission in June.
“Due to continued negative macroeconomic factors and their uncertain impacts on the Company’s business, operating results and cash flows, the Company expects to suffer further operating losses,” the company said in the document, as reported by Detroit Free Press.
Big Lots also stated that it “expects to have difficulty remaining in compliance with such agreements.”
Big Lots cited “high inflation” as one of the main reasons it would close stores, claiming that rising product costs and rising labor costs have “impacted the purchasing power” of its customer base.
The decision to close the stores left consumers speculating whether the company would file for bankruptcy in the near future.
Still, the company continues to operate in more than 1,000 locations across the US.
Only two states, Alaska and Hawaii, do not have at least one Big Lots location.
BIG REACTION
Big Lots has accumulated a significant customer base over the past few decades, and consumers are understandably upset about the decision to close even more stores.
Former customers of its Michigan stores took to social media to voice their concerns about the closures.
“I’m sorry the employee lost his job,” wrote one Facebook user.
“So sad. I have so many socks in there,” another user commented.
LOCATION OF LARGE LOTS REVEALED
Affected Big Lots locations span a wide geographic area, including:
- Alabama: Troy
- Arizona: Flagstaff, Glendale, Laveen, Mesa, East Mesa, Peoria, Phoenix (Ray Road, 75th Avenue, Bell Road, West Bethany Road, East Bell Road), Scottsdale, Tucson (North Oracle Road)
- Colorado: Aurora (South Parker Road), Grand Junction, Littleton, Longmont
- Connecticut: Manchester, Milford, Waterford
- Florida: Boca Raton, Bonita Springs, Clewiston, Coconut Creek, Destin, Hallandale, Hollywood, Miami Lakes, Orange Park, Orlando (Waterbridge Downs), Pompano Beach
- Georgia: Savannah, Thomson
- Illinois: Crest Hill, Lockport, Niles
- Indiana: North Indianapolis, Kokomo
- Kansas: Kansas City
- Louisiana: Lafayette, Natchitoches
- Maryland: Laurel, Lexington Park, Reisterstown
- Massachusetts: Dennis Porto
- Michigan: Kentwood, Okemos, Portage, Ypsilanti
- Minnesota: Alberto Lea
- Missouri: Kansas City (Washington Street), São José, São Luís (Christy Boulevard)
- Montana: Helena
- New York: Carle Place, Centereach, Queensbury
- North Caroline: Durham (Avondale Drive)
- Oregon: Albany, Salem
- Pennsylvania: Clifton Heights, Exton
- South Carolina: Aiken, Chester, Newberry
- South Dakota: Fast city
- Utah: Layton, Logan
- Vermont: Bar
- Virginia: Fredericksburg (Warrenton Road), Manassas
- Washington: Bellingham, Burien, Covington, Everett, Kent, Lacey, Lynnwood, Olympia, Port Angeles, Renton, Tacoma (72nd Street), Vancouver (SE 164th Avenue)
- Wisconsin: Fond du Lac, Menomonee Falls, Mount Pleasant, Sheboygan, West Bend
“Nooooo!!! I love Big Lots! Especially on holidays!!” one user shared.
“Oh no! I love big batches,” another user wrote.
“I hope Big Lots can bounce back… And yes, I work at a Big Lots store… been with them for over 25 years,” one user added.
Some customers, however, seemed to think the closures were “deserved.”
“I am indifferent to large batches. It’s a good store, but I can take it or leave it,” commented one user.
“It doesn’t surprise me. Every time I drive by the one in my town, the parking lot is empty or there are few cars there,” one user wrote.
“They are no longer the store they were 5 years ago. I won’t go there anymore,” wrote a former buyer.
“Close them all,” scoffed one user.
“Oh well,” another user commented.
Big Lots bankruptcy fears
Big Lots has warned that it may have to close up to 40 locations this year.
The discount retailer opened up about its financial struggles in its recent regulatory filing.
“By 2024, we currently expect to open three stores and close 35 to 40 stores,” Big Lots bosses wrote.
But questions remain about its “current cash and liquidity projections,” according to the document.
There are “substantial doubts about the company’s ability to continue operating,” according to court documents.
Big Lots operates more than 1,300 stores in 48 states and is headquartered in Columbus, Ohio.
“The company suffered net losses and used cash on operating activities in 2022, 2023 and the first quarter of 2024,” the network wrote.
The retailer blamed its financial problems on “continuous negative results [economic] factors” amid falling sales.
But there was hope of a turnaround through cost reduction and increased sales.
“The company intends to vigorously pursue its plans to increase its liquidity [and] improve business performance,” the court documents said.
Big Lots hopes to save the company by profiting from some of its properties, through “outright sale or sale and leaseback opportunities.”
BIG PARTY?
As Big Lots continues to close one store after another, some consumers were notably shocked when the chain decided to hold a private concert in Columbus.
Earlier this week, the chain and its charitable arm, the Big Lots Foundation, partnered with Bret Michaels’ Life Rocks Foundation to throw what appeared to be a huge party.
The event featured a performance by the rock icon himself, who posted about the celebration before and after it took place.
“It will be a night of great energy, great music and a great party with a purpose.” Michaels wrotein what appeared to be a promotional post for the event.
Michaels also shared a photo from the show on her Instagram Stories, posting a fan selfie.
He was seen smiling in front of hundreds of spectators.
Big Lots and Michaels were tagged in the post, with Michaels adding Poison’s hit single Nothin’ But a Good Time to his story.
“WHAT A FREAKIN EXPLOSION!” Bret shared the now-deleted post.
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This story originally appeared on The-sun.com read the full story
