A new Securities & Exchange Commission filing shows that up to 315 Big Lots store locations could be closed as the company continues to “aggressively address underperforming stores.”
The Securities & Exchange Commission filing, which was filed on Friday, revealed that Big Lots had increased the number of permitted store closings to as high as 315 as part of a series of amendments to a credit agreement and term loan facility. According to Fox Business, the filing marked an increase of 165 stores from its original number of 150 potential closings.
Big Lots noted that the amendments were made “in connection to its previously disclosed intention to aggressively address underperforming stores,” according to Fox Business. Fox Business reported that Big Lots currently has over 1,300 store locations across the United States.
A Big Lots spokesperson told Fox Business that the discount chain retailer continues to offer “incredible value and remarkable discoveries” for its customers as it navigates a “clear plan to build a stronger business.” The spokesperson explained that the Big Lots chain is working to improve the efficiency of its operations and is regularly evaluating its store footprint to ensure that the business is able to continue effectively serving its customers.
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“While the majority of our stores are profitable, we have made the difficult decision to close certain underperforming stores,” the spokesperson added. “We are confident that the steps we are taking will best position the company for the future as we return to our roots, focus on owning the bargain space, and deliver unmistakable value to our customers.”
According to Fox Business, Big Lots previously indicated that 35 to 40 store closures were expected in addition to three new store openings. The company acknowledged concerns regarding the company’s “ability to continue” in the face of decreased consumer spending amid persisting inflation.
In the company’s first-quarter earnings release, Big Lots CEO Bruce Thorn said, “We remain focused on managing through the current economic cycle by controlling the controllables. As we move forward we’re taking aggressive actions to drive positive comp sales growth in the latter part of the year and into 2025, and to maintain year-over-year gross margin rate improvements, all driven by progress on our five key actions.”
Thorn added, “As a reminder, our five key actions are to own bargains, to communicate unmistakable value, to increase store relevance, to win customers for life with our omnichannel efforts, and to drive productivity.”
The Big Lots CEO claimed that by implementing the “five key actions,” the company would be on “the right path” to turn the business around.
