(CNN) —Big Lots is closing more than 300 locations in the United States, or about four percent of its stores, after previously warning that the company’s future was “significantly uncertain” amid ongoing financial problems.
The discount retailer had already announced it would close up to 40 stores in its most recent earnings report in June, when it reported a 10% drop in sales and a $205 million loss for the quarter as customers spent less. In a recent regulatory filing, Big Lots said it would increase the number of store closures to 315 as part of an updated credit agreement to shore up its finances.
A specific list has not been released, but Big Lots lists clearance sales at hundreds of its 1,389 stores on its website.
Big Lots said in a statement to CNN on Tuesday that the company is “taking decisive steps to operate efficiently and continually reviewing our store footprint to ensure we are best positioned to serve our customers and our business.”
A company spokesman said that while the “majority” of its stores were profitable, the company was making the “difficult decision” to “close certain underperforming stores.”
“We believe the steps we have taken best position the company for the future as we return to our roots, focus on dominating the bargain market and providing distinctive value to our customers,” Big Lots said.
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CEO Bruce Thorn said in a press release in June that the company “missed its revenue targets largely due to a continued decline in consumer spending by our core customers, particularly on high-cost consumer goods.”
However, the latest regulatory filing was more dire about the state of the 57-year-old company. The filing said there was a “substantial likelihood” of a potential default on a 2022 loan and that the company had “substantial doubt” about its ability to maintain operations.
The fact that customers are spending less on non-essential items has hurt many retailers and even driven some out of business. Amazon and other online retailers have also hurt traditional brick-and-mortar stores.
Conn’s HomePlus, a 134-year-old furniture and electronics retailer, recently filed for bankruptcy and is in the process of closing all of its stores. Bob’s Stores and 99 Cents Only Stores also closed their businesses earlier this year.
Big Lots (BIG) shares have fallen nearly 90% for the year.
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