Discount home goods retailer Big Lots is reportedly on the brink of bankruptcy after years of declining sales.
The embattled chain could file for Chapter 11 protection within weeks, according to Bloombergif he fails to find investors.
The Ohio-based company operates about 1,400 stores across the United States, after closing hundreds of locations earlier this year.
Big Lots shares fell as much as 50 percent Thursday morning, dropping to $0.56 per share at the time of publication.
Chief Executive Bruce Thorn warned during the company’s latest earnings call that Americans were cutting back on spending on big-ticket items, especially furniture, which was hurting sales.
Discount home goods retailer Big Lots is reportedly on the brink of bankruptcy after years of declining sales and store closures (pictured: store closing in Manassas, Virginia)
Big Lots received a loan earlier this year to help overcome its liquidity problems, Bloomberg reported, and has been seeking additional financing in recent weeks.
The network has seen its revenue decline steadily in each of the last ten quarters. In the first three months of 2024, it lost a whopping $132 million.
Company representatives did not respond to the outlet’s requests for comment on its plans.
This comes after Big Lots identified dozens of locations in states including Connecticut, Massachusetts, Michigan, New Hampshire and Vermont that are on the verge of closing.
Earlier this month, stores that are As they left the business, a sign reading “Closing this location” was displayed on the chain. websitealong with a 20 percent off promotion.
The latest closures follow 40 other stores that closed their doors in June.
Regarding the closures, a company spokesperson told Retail Dive earlier this month: “While the majority of our stores are profitable, we have made the difficult decision to close certain underperforming stores.”
“We are confident that the steps we are taking will better position the company for the future as we return to our roots, focus on owning the offering space and deliver unmistakable value to our customers.”
During Big Lots’ latest earnings conference call, CEO Bruce Thorn said the company wants to expand its offering of ultra-low-cost products as Americans cut back on big-ticket items.
“We think Big Lots is in a tough spot,” Joe Feldman, an analyst at Telsey Advisory Group, said in a note at the time.
Big Lots shares plunged as much as 50 percent Thursday morning, hitting $0.56 per share at the time of publication.
The store sells furniture and home goods, as well as toys, beauty products and groceries.
Big Lots is known for its discounted items.
On Reddit, Big Lots store managers have complained that they are receiving more and more inventory that customers don’t buy.
“In the last month we received four of the largest trucks we’ve seen all year and triple the amount we normally receive,” one wrote.
‘The warehouse is practically full and nothing is being sold.’
Another posted: “Isn’t that the weirdest thing? There are so many things, but none of them are what people want.”
The troubles for Big Lots come amid a widespread “retail apocalypse” that is seeing stores struggle with consumer pushback and increasingly tight margins.
There were almost 2,600 store closures in the first four months of 2024If this trend continues, almost 8,000 people will have been lost by the end of the year.
In recent months, Walmart has closed three more underperforming stores. Best Buy closed ten. in March.
Dollar stores have also been hit hard: 99 Cents Only announced in April that it would close all 371 of its stores in California, Texas, Arizona and Nevada.
The 1,000 closures of Family Dollar and its sister company Dollar Tree will occur in the next three years.
