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Big Lots is reportedly considering filing for bankruptcy due to declining sales, according to Bloomberg.
The discount retailer is exploring options, including seeking investors to avoid Chapter 11. This news comes two months after Big Lots expressed “substantial doubt” about its ability to continue operating in a mid-June SEC filing, citing reduced consumer spending amid inflation.
Big Lots reported net losses and negative operating cash flow for 2022, 2023, and Q1 2024. In Q1 2024, its net sales dropped 10.2% year-over-year to $1 billion, and for 2023, sales decreased by 13.6% to $4.72 billion. Additionally, on August 2, the company increased its allowed store closures from 150 to 315 by amending its credit agreement and term loan facility.
As of the first quarter, Big Lots operated nearly 1,400 stores across the U.S., offering home goods, furniture, seasonal decorations, and other products.
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