LAST CALL: Big Lots reveals 56 more locations will close down for good after slashing hundreds of stores in recent retail slaughter
According to The Sun, In a significant blow to the retail sector, Big Lots has announced it will close 56 additional stores as part of its Chapter 11 bankruptcy proceedings. This decision comes as the company faces mounting financial challenges, with a total of 295 locations set to shut down in the near future.
Details of the Bankruptcy
After weeks of speculation, Big Lots confirmed its bankruptcy status, which will result in hundreds of store closures across the country. Currently, the discount retailer operates 1,389 branches in 48 states, with Alaska and Hawaii being the only states without stores. Alongside the recently announced closures, around 250 more locations are expected to close before January 15, 2025.
Big Lots President and CEO Bruce Thorn addressed the situation, stating, “Though the majority of our store locations are profitable, we intend to move forward with a more focused footprint to ensure that we operate efficiently and are best positioned to serve our customers.” He emphasized that the company aims to optimize its store fleet through the bankruptcy process.
The Retail Landscape
Big Lots is not alone in facing challenges; the retail sector is experiencing widespread strain due to changing consumer behavior, the rise of e-commerce, and inflationary pressures stemming from the pandemic. Retail experts have noted a 24% increase in store closures in 2024, highlighting the difficulties many chains are encountering as borrowing costs rise and consumers tighten their spending.
In September, Big Lots entered into a sale agreement with investment firm Nexus Capital Management as part of its restructuring efforts. Thorn remarked that the company would be adopting a “more focused” retail footprint to remain profitable, with closures being part of an initiative to address underperforming stores. The struggling retailer reported a significant drop in sales, with net sales down $114.5 million in the first quarter of 2023.
Customer Reactions
The rapid downsizing has sparked frustration among loyal Big Lots customers and employees. Many took to social media to express their dismay over the news of impending store closures. One user lamented, “Why why I go cry,” while another commented, “Sign of the times.” Others echoed the sentiment, stating, “And the hits keep coming!”
The deadline for submitting bids for Big Lots is tomorrow, October 15, as the retailer navigates this challenging period. Concerns remain about its ability to compete with larger chains like Walmart and Target, as the retail landscape continues to evolve.
