Big Lots (NYSE:BIG) Inc., an off-price home goods retailer, is reportedly considering filing for bankruptcy due to a persistent decline in sales, according to Bloomberg News. Shares dropped by 20% in after-hours trading.
The retailer is actively seeking investors to stave off a Chapter 11 bankruptcy, based on insights from an anonymous source. However, the source emphasized that the company's strategies are not set in stone and could evolve.
This news follows a report from two weeks ago indicating that Big Lots intends to shut down over 300 of its locations throughout the United States, which is approximately a quarter of its total stores. This move was part of a larger response to financial challenges, with the company previously expressing significant concerns about its future viability.
In its latest earnings report released in June, Big Lots had already announced plans to close up to 40 stores after suffering a 10% sales decline and a quarterly loss of $205 million. The company attributed these losses to a reduction in consumer spending.
A more recent regulatory filing revealed that the number of projected store closures has increased to 315, as part of a revised loan agreement aimed at securing the retailer's finances.
While Big Lots has not disclosed a specific list of stores to be closed, it has advertised closing sales at hundreds of its 1,389 stores on its website, signaling widespread reductions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.