Big Lots Plans to Close Up to 40 Stores Amid Financial Struggles
Declining Revenue and Cash Burn Raises Concerns About Company's Viability
Ohio-based retail chain Big Lots has announced plans to close 35 to 40 store locations by the end of 2024. The move comes as the company faces financial challenges, including declining revenue and a depletion of cash reserves.
Financial Woes and Loss of Stores
Big Lots has reported significant net losses and burned through its cash reserves over the past several years. In its recent financial filing, the company reported 1329 operating stores at the start of 2024, down from 1425 in the first quarter of 2023. The planned closures would further reduce that number to approximately 1289 stores.
Reasons for Closures
In a statement, Big Lots cited declining revenue due to a drop in net sales as the reason for the closures. The company has also faced increased competition from online retailers and other discount chains.
Impact on Struggling Retailers
Big Lots' announcement joins a growing list of retail closures in 2024. Brick-and-mortar retailers have been hit hard by the shift to online shopping and rising inflation, leading to store closures and layoffs.
Comments