A major U.S. discount retailer known for its home goods and furniture, is reportedly teetering on the edge of bankruptcy following years of declining sales and widespread store closures. The Ohio-based company, which operates around 1,400 stores nationwide, may seek Chapter 11 bankruptcy protection in the coming weeks if it fails to secure new investors.
The company, Big Lots!, has been grappling with financial difficulties, exacerbated by a significant drop in consumer spending on big-ticket items, particularly furniture. This trend has hit Big Lots! hard, leading to a sharp decline in revenue over the past ten quarters. In the first quarter of 2024 alone, the retailer reported a staggering loss of $132 million.
Photo: Dreamstime.
Big Lots! shares plummeted by as much as 50%, dropping to just $0.56 per share. The steep decline in stock value highlights the company's precarious financial position.
Earlier this year, Big Lots! secured a loan to address its liquidity issues, but it has continued to struggle, prompting the search for additional financing. Despite these efforts, the company has been forced to close hundreds of stores, with more locations in states like Connecticut, Massachusetts, Michigan, New Hampshire, and Vermont slated for closure.
In recent weeks, stores marked for closure have been offering 20% off promotions, signalling the end for many of these locations. As the retailer battles to stay afloat, its future remains uncertain, with bankruptcy protection potentially serving as its last resort. Representatives from Big Lots! have not commented on the company's current situation or its plans moving forward.
Source: www.dailymail.co.uk