Big Lots to close 35-40 locations as company expresses doubt about finances

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Justin Boggs is a writer for the E.W. Scripps company. Justin covers anything from politics to sports and entertainment.

In a filing with federal regulators, discount retailer Big Lots said it intends to close 35-40 locations in the coming year, while only opening three new stores.Of the 1,392 stores Big Lots operates, the company considers 244 of them"underperforming."

In its filing, the company warned that it could struggle to meet its financial obligations as it"intends to vigorously pursue its plans to enhance its liquidity" and improve the performance of the business. The closure of locations could allow it to liquidate assets as well as sell off some of its real estate.The company added that it has"substantial doubt" about its economic future.

The announcement comes amid falling sales. Big Lots said its net sales decreased $114.5 million, or 10.2%, in the first quarter of 2024 compared to the first quarter of 2023. Meanwhile, its long-term debt increased by $72.2 million from $501.6 million since the first quarter of 2023.Big Lots has not said which 35-40 locations would close. Scripps News has contacted Big Lots for additional comment.

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