After posting a near half-billion-dollar loss last year, Big Lots is concerned about its future and expects to close dozens of stores.
In the company's (NYSE: BIG) quarterly report filed in June, it concluded there is a "significant likelihood" it won't be able to pay its debt within the next year, raising "substantial doubt" about its "ability to continue."
That same filing said the discount retail chain anticipates shuttering 35 to 40 stores in 2024, while opening only three new locations.
According to the filing, in the first quarter of last year Big Lots had 1,425 stores – a number that now sits at 1,392. It appears the 35 to 40 closings would shrink that number even more.
It's not clear where the forecasted closings are located, nor how many employees the closures would affect.
The company did not respond to questions from Columbus Business First before publication.
The filing said Big Lots "intends to vigorously pursue its plans to enhance its liquidity, improve the performance of the business, and avoid a covenant violation."
The retailer has been underwater in recent years, challenged by high inflation and its lower-income customer base cutting back.
In FY 2023, according to Business First research, the company posted the largest net loss of any public company headquartered in Central Ohio – reporting a $481.88 million deficit. That more than doubled its $210.7 million loss the year prior.
CEO Bruce Thorn signaled last summer that Big Lots could be gearing up for a rebound. Shifting trends and new initiatives had the company ready to chase sales again.
“For the last year and a half, we’ve been playing defense,” he said on a call with stock analysts in August. “We’re in a position to get back to playing offense.”
But almost a year later, the company is still mounting loses.
In its first quarter this year, net sales fell $114.5 million, or 10.2%. It also reported a $205 million loss. It lost $206 million in the first quarter last year.
Big Lots' $4.72 billion revenue last fiscal year ranked tenth among Central Ohio public companies.
Big Lots, what used to be called Odd Lots here in Ohio, is basically just Dollar General with less glitter these days. The unclaimed freight sales that made them a household name is long gone.
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