Discount retailer Big Lots is closing more than 300 stores in the US after warning that its future was uncertain.
Big Lots will lose about a quarter of its locations after the company previously announced plans to close about 40 locations in a quarterly report. At the time, the company said revenue fell 10 percent in the quarter, or about $205 million, as customers spent less.
In a subsequent regulatory filing, the company said it would increase the number of branch closures to 315 as part of a loan agreement.
While a full list of stores closing has not been released, Big Lots lists clearance sales at hundreds of its stores on its website.
The company said in a statement to CNN that it is “taking decisive action to operate efficiently and continually reviewing our store footprint to ensure we are best able to serve our customers and our business.” The company’s shares have fallen about 90 percent this year.
A spokesman added that most of its stores were profitable, but the retailer was closing some “poorly performing” locations.
“We believe the steps we have taken best position the company for the future as we return to our roots, focus on conquering the bargain market and offering our customers distinctive value,” the company said.
In June, CEO Bruce Thorn said in a press release that Big Lots missed its “sales targets” because the company’s “core customers, particularly in high-end consumer goods,” spent less.
The regulatory filing said there was a “substantial likelihood” that the company would be unable to meet its loan payment obligations in 2022 and that Big Lots had “substantial doubt” that it could remain a going concern.
Customers’ reduction in spending on non-essential items has hurt not only Big Lots, which has been in business for 57 years, but also a number of other stores—Amazon and other online retailers have also taken business away from brick-and-mortar companies.
Conn’s HomePlus, which sells furniture and electronics, has filed for bankruptcy after 134 years and is closing all of its stores. Bob’s Stores and 99 Cents Only Stores also failed to stay in business this year, CNN reported.
