Big Lots closing up to 40 stores as bankruptcy looms

Discount retailer Big Lots will close between 35 and 40 stores this year as bankruptcy looms, citing “elevated inflation” and decreased consumer spending.

It marks the latest chain with locations in Oregon to file for bankruptcy. Others include Red Lobster, Rite Aid and Bed Bath & Beyond.

“In 2024, the U.S. economy has continued to face macroeconomic challenges, including elevated inflation, which has adversely impacted the buying power of our customers,” a financial disclosure from Big Lots states.

A spokesperson for Big Lots did not immediately respond to a request from the Statesman Journal seeking comment and information on which stores may be closing. The potential bankruptcy was first reported by the New York Post.

The filing says Big Lots still expects to open three stores in 2024, but plans to close between 35 and 40. There are 14 Big Lots stores in Oregon.

Where are Big Lots in Oregon?

The discount chain has locations in Albany, Beaverton, Bend, Eugene, Grants Pass, Gresham, Hermiston, Klamath Falls, Medford, North Bend, Portland, Roseburg, Salem and Springfield, according to its website.

Surge in bankruptcies

June saw the highest level of bankruptcies since the COVID-19 pandemic in early 2020, according to a report by the Wall Street firm S&P Global.

This year’s bankruptcies have totaled 346, “higher than any comparable figure in the prior 13 years,” S&P said.

“High interest rates, supply chain issues and slowing consumer spending continue to weigh on struggling companies,” the note states.

From March 2022 to July 2023, the Fed hiked its key interest rate from near zero to a range of 5.25% to 5% — a 23-year high — in an effort to tame a pandemic-induced inflation spike.

Recent reports underscore that inflation eased notably in May, with a key measure the Fed follows closely at 2.6%. That’s above the Fed’s 2% goal but the lowest since March 2021 and down from a peak of 5.6% in mid-2022.

But Jerome Powell, who chairs the Federal Reserve, has maintained a cautious stance about lowering rates since inflation unexpectedly picked up in the first quarter following a significant slowdown last year.

Chad Murphy and Daniel Munoz of the Cincinnati Enquirer contributed.

Isabel Funk covers breaking news and public safety for the Statesman Journal. Funk can be reached atifunk@salem.gannett.com or on X at @isabeldfunk