Big Lots Slashes 56 More Locations in Response to Ongoing Retail Challenges
Big Lots, a major discount retailer, is set to close 56 more stores as part of its ongoing Chapter 11 bankruptcy proceedings, reflecting the escalating challenges within the retail sector. Following weeks of speculation, the company has confirmed that it will shutter a total of 295 locations, with around 250 more slated to close before January 15, 2025.
Company Overview
Currently, Big Lots operates 1,389 branches across 48 states, with only Alaska and Hawaii lacking stores. The Ohio-based company is in the process of selling off its assets to a private firm following its bankruptcy declaration.
Leadership Statement
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 use the bankruptcy process to optimize its store fleet in an orderly manner.
Challenges in the Retail Sector
The decision to close stores is part of a broader trend affecting retailers across the country. Many are struggling with changing consumer behaviors, the rise of e-commerce, and inflationary pressures that emerged during the pandemic. According to retail data provider CoreSight, there has been a 24% increase in store closures in 2024 alone, indicating significant strain on brick-and-mortar stores.
Recent Developments
In September, Big Lots entered into a sale agreement with investment firm Nexus Capital Management. Thorn noted that the company would pursue a “more focused” retail footprint to ensure profitability. The store closures are part of a strategy to “aggressively address underperforming stores.”
Financial Struggles
The retailer has experienced declining sales in recent years, with net sales dropping by $114.5 million in the first quarter of 2023. Nexus’ initial bid for the company establishes a minimum price for the sale and serves as a benchmark for other potential buyers.
Customer Reactions
The rapid downsizing of Big Lots has led to frustration among customers and employees. Many loyal shoppers have expressed their disappointment on social media, with comments such as “Why why I go cry” and “Sign of the times” reflecting their dismay.
Bidding Deadline
The deadline for submitting bids on Big Lots is tomorrow, October 15. As the situation develops, concerns remain about the company’s ability to compete against larger retailers like Walmart and Target.
