Popular Articles
Today Week Month Year


RETAIL COLLAPSE ACCELERATES: Discount homeware chain Big Lots is closing 315 stores due to financial struggles and declining sales
By Laura Harris // Aug 11, 2024

A discount homewares store chain in the United States is shutting down 315 stores across multiple states due to growing financial woes, the beleaguered retailer revealed in a regulatory filing to the Securities and Exchange Commission (SEC).

Big Lots, which accounts for approximately 1,392 stores across the country, warned its financial regulators that its earnings have consistently fallen over the past 10 quarters. In June, it reported a net loss of $205 million in the quarter ending May 4, with its president and CEO Bruce Thorn stating that sales had taken a hit "due largely to a continued pullback in consumer spending, particularly in high ticket discretionary items." The retailer's sales also fell 10 percent to $1 billion in the first quarter. (Related: Discount homeware chain Big Lots warns of BANKRUPTCY filing, triggering fears of mass closures.)

In the filing, the Columbus, Ohio-based chain stated that it had used up most of its spare cash to cope with these losses. It also revealed that the company had already tried to cut costs, boost customer spending and get cheaper credit, but these steps were insufficient.

Initially, Big Lots had agreed with lenders to close 150 underperforming stores, in addition to the 40 store closures announced in June. However, the company has now decided to close a total of 315 stores to cut costs amid declining sales and rising expenses. This move will reduce Big Lots' store count by roughly a quarter.

The company has pinpointed locations in Connecticut, Massachusetts, Michigan, New Hampshire and Vermont for closure. The chain has not released a comprehensive list of the stores slated for closure, but affected locations are marked with a "closing this location" banner on their website and a 20 percent off promotion.

"While the majority of our stores are profitable, we have made the difficult decision to close certain underperforming stores," a company spokesperson told Retail Dive. "We are confident that the steps we are taking will best position the company for the future as we return to our roots, focus on owning the bargain space, and deliver unmistakable value to our customers."

The retailer said it will support its "hard-working associates who are impacted by a closure, including by accepting requests to transfer to another Big Lots location, if they choose. "Workers unable to move to another store will be given severance," the spokesperson added.

Brick-and-mortar stores close amid a retail apocalypse

This closure is part of a broader "retail apocalypse," where brick-and-mortar stores grapple with rampant theft and increasingly tight margins.

 In the first four months of 2024 alone, nearly 2,600 stores shut their doors and if this trend persists, the year could witness the closure of approximately 8,000 retail outlets. These closures reverberate across the industry, affecting businesses, from discount stores to major retail giants.

Walmart, a staple in American retail, has not been immune to the downturn. In recent months, the retail giant has closed three more underperforming locations. Best Buy, another major retailer, closed ten stores in March. Dollar stores, a fixture in American retail, have been hard hit too. In April, 99 Cents Only announced it would shutter all 371 locations across California, Texas, Arizona and Nevada. Additionally, Family Dollar and its sister company Dollar Tree are set to close 1,000 stores over the next three years.

Mall staples are also feeling the pinch.

Express, a popular clothing retailer, filed for bankruptcy in April and announced it would shut down 95 Express outlets with all its UpWest stores. Similarly, Rue21, a teen fashion chain with a significant presence in malls across America, revealed in May that it would close all 543 U.S. stores after going bankrupt.

The downturn has not spared specialty retailers either. Badcock Home Furniture & More announced at the end of July that it is closing all 380 stores scattered across the Southern United States after falling into bankruptcy earlier this year.

Check out Collapse.news for more stories about retail bankruptcies.

Watch this video that talks about the fast-casual restaurant chain MOD Pizza closing down more than 40 stores this year.

This video is from the Daily Videos channel on Brighteon.com.

More related stories:

Walmart store closures leave local communities grappling with economic and social consequences.

Walmart cuts another 2,000 warehouse jobs following retail store closure announcement.

BANKRUPTCY BOOM: U.S. saw 70 major bankruptcies in just 4 months, the third worst start of year since 2000.

Bankruptcy filings in U.S. surge at fastest pace since 2009 as Bidenflation continues to ravage Americans, businesses.

Fast-casual pizza chain MOD Pizza in the red, considers BANKRUPTCY FILING.

Sources include:

DailyMail.co.uk

BigLotsInc.gcs-web.com

CBSNews.com

Brighteon.com



Take Action:
Support NewsTarget by linking to this article from your website.
Permalink to this article:
Copy
Embed article link:
Copy
Reprinting this article:
Non-commercial use is permitted with credit to NewsTarget.com (including a clickable link).
Please contact us for more information.
Free Email Alerts
Get independent news alerts on natural cures, food lab tests, cannabis medicine, science, robotics, drones, privacy and more.

NewsTarget.com © 2022 All Rights Reserved. All content posted on this site is commentary or opinion and is protected under Free Speech. NewsTarget.com is not responsible for content written by contributing authors. The information on this site is provided for educational and entertainment purposes only. It is not intended as a substitute for professional advice of any kind. NewsTarget.com assumes no responsibility for the use or misuse of this material. Your use of this website indicates your agreement to these terms and those published on this site. All trademarks, registered trademarks and servicemarks mentioned on this site are the property of their respective owners.

This site uses cookies
News Target uses cookies to improve your experience on our site. By using this site, you agree to our privacy policy.
Learn More
Close
Get 100% real, uncensored news delivered straight to your inbox
You can unsubscribe at any time. Your email privacy is completely protected.