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Big Lots admits ‘substantial doubt’ it can continue to run its 1,400 locations with 40 closures already in pipeline

BANKRUPTCY fears are increasing for Big Lots as the retailer continues to struggle financially with its stock dropping to an all-time low.

It comes after the discount home goods retailer already closed over 50 locations last year and last month announced the closure of up to 40 more.


Fears have been raised for the future of Big Lots after executives admitted ‘substantial doubt’ about operations and meeting credit agreements[/caption]

The retailer has already shuttered 13 locations this year.

The company has blamed its latest struggles on “elevated inflation,” a “pullback in consumer spending” and a “significant number of underperforming stores,” according to the company’s June SEC filing.

In the first three months of this year, the Ohio-based chain lost a staggering $132 million.

Now, despite announcing the closure of up to 40 locations, after already losing 52 in 2023, bosses have admitted they have doubts about their ability to continue operations.

The SEC filing revealed that the company has been heavily reliant upon a cash supply that has been steadily diminishing since 2022.

“Our net losses and use of cash in operating activities in 2022, 2023, and the first quarter of 2024, as well as our current cash and liquidity projections, raise substantial doubt about our ability to continue,” the report stated.

Executives noted that the company “expects to experience further operating losses and expects to experience difficulty remaining in compliance” with its credit agreements.

However, the company said it will “vigorously pursue its plans to enhance its liquidity, improve the performance of the business, and avoid a covenant violation.”

Its net sales dropped by over $114 million in the first quarter compared to the same time in 2023.

Meanwhile, Big Lots‘ latest fiscal report showed a loss of $4.51 per share, marking its ninth quarterly loss.

On Monday, Big Lots’ stock was down 82% after dropping as fears of bankruptcy rose following the comments by executives about the retailer’s doubtful future.

Seeking Alpha Analyst Yiannis Zourmpanos made a bleak prediction for the company as he warned officials “plan your exit strategically.”

“I anticipate bankruptcy will likely occur within the next 12-24 months,” as the company faces “severe financial distress.”

The U.S. Sun has reached out to Big Lots for comment.

Big Lots is not the only business struggling against inflation and other financial pressures.

Late last year, Rite Aid filed for bankruptcy and has since confirmed a raft of new closures across Ohio and Michigan despite hopes that it will leave bankruptcy following an agreement with lenders.

Restaurant closures in 2024

BOSSES at major dining chains have announced a series of restaurant closures. The U.S. Sun has compiled a list of the chain’s affected.

  • Cracker Barrel: Stores in Medford, Oregon, Columbia, South Carolina, and Sacramento, California, have closed.
  • Mod Pizza: Bosses dramatically shuttered 27 shops in April, including some in the state of California.
  • Frisch’s Big Boy: Restaurant chiefs confirmed the closure of a restaurant in Covington, Kentucky in April.
  • Outback Steakhouse: The chain will shutter 41 ‘underperforming’ locations this year.
  • Two Bucks: Four restaurants in Ohio closed in April.
  • Chili’s: A restaurant in Port Arthur, Texas, has shut permanently as well as one in Irvine, California.
  • Friendly’s: Bosses confirmed an establishment in Ronkonkoma, Long Island will close.
  • Pizza Hut: A restaurant in Glen Falls, New York, closed at the end of March, followed by four in Ohio in June and 15 in Indiana.
  • Denny’s: Two restaurants in Boise and Nampa, Idaho, have closed.
  • Carl’s Jr.: The first Boise, Idaho location has closed.
  • In-N-Out: An Oakland location closed earlier in the year due to crime in the area.
  • Cheesecake Factory: The chain is set to shutter a location in Memphis, Tennessee in July.
  • Applebee’s: Announced the closure of between 25 and 35 locations this year.
  • Taco John’s: Shuttered a restaurant in Minnesota and put the building up for sale in May.
  • Rubio’s Coastal Grill: Has announced the closure of 48 locations in California after filing for bankruptcy.
  • Burger King: Shuttered a location in California in June after 30 years.

Meanwhile, Bob’s Stores have filed for bankruptcy and announced the closure of all locations with liquidation sales being held until July 14.

“We regret that our financial position necessitated the liquidation of Bob’s Stores,” Dave Barton, president of Bob’s Stores said.

“Bob’s has been a stalwart of our local communities for nearly 70 years, and we know our customers remember us as having been there for major moments in their lives. 

“We remain grateful to our vendors, suppliers, customers, and employees for all of their support over the years.”

After 15 years, a toy company has also announced its demise by filing for bankruptcy, blaming “consumer slowdown” and rivals like Toys R Us.

Concerns for Walgreens have also been raised after the CEO confirmed a slew of closures across the US.

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