Big Lots to Close 300 Stores in U.S., many in California; Fear Company Could Enter Bankruptcy

These factors have led to a "substantial doubt" about Big Lots' future viability, according to the company’s leadership.Photo byBernard HermantonUnsplash

Big Lots is preparing to close approximately 300 additional stores, raising fears that the company may soon file for bankruptcy. This development follows a series of SEC filings and comes as the retailer struggles with declining sales and growing financial pressures.

In early July, Big Lots warned that between 35 and 40 stores could close this year, but a new filing on July 31 has significantly revised that estimate. The company now expects as many as 315 stores to shut their doors, a number more than double the originally planned 150 closures.

Big Lots, a discount retailer known for offering a wide range of household goods, furniture, and groceries, has been a staple in many communities. The potential closure of such a large number of stores could have significant impacts on employees, customers, and the retail landscape as a whole.

Company leaders have expressed significant concerns about their ability to stay afloat, citing inflation and increased competition as major challenges. These factors have led to a "substantial doubt" about Big Lots' future viability, according to the company’s leadership.

As the company navigates these turbulent times, the retail industry will be watching closely to see how Big Lots manages its financial challenges and whether it can avoid the fate that has befallen other once-prominent retail chains.