Big Lots is closing hundreds of stores after warning it could go out of business

Jordan Valinsky, CNN

New York (CNN) — Big Lots is closing much than 300 locations crossed nan United States, aliases astir 4% of its stores, pursuing an earlier informing that its early was successful “substantial doubt” amid ongoing financial troubles.

The discount retailer antecedently said it planned to adjacent arsenic galore arsenic 40 stores during its astir caller net study successful June, erstwhile it recorded a 10% alteration successful income and a $205 cardinal nonaccomplishment for nan 4th because customers are cutting backmost connected spending. In a caller regulatory filing, Big Lots said it would summation nan number of closures to 315 stores, portion of an updated indebtedness statement to unafraid its finances.

A circumstantial database wasn’t revealed, but Big Lots is listing closing income astatine hundreds of its 1,389 stores connected its website.

Big Lots said successful a connection Tuesday to CNN that it’s “taking decisive actions to run efficiently and reviewing our shop footprint connected an ongoing ground to make judge we’re champion positioned to service our customers and our business.”

A institution spokesperson said that though a “majority” of its stores are profitable, it’s making nan “difficult determination to adjacent definite underperforming stores.”

“We are assured that nan steps we are taking will champion position nan institution for nan early arsenic we return to our roots, attraction connected owning nan bargain space, and present unmistakable worth to our customers,” Big Lots said.

CEO Bruce Thorn said successful a property merchandise successful June that nan institution “missed our income goals owed mostly to a continued pullback successful user spending by our halfway customers, peculiarly successful precocious summons discretionary items.”

The caller regulatory filing, however, was much dire astir nan authorities of nan 57-year-old company’s health. The filing said that there’s a “significant likelihood” of a imaginable default connected a 2022 indebtedness and that nan institution has “substantial doubt” astir nan company’s expertise to stay operational.

Customers cutting backmost their spending connected non-essential items has wounded a number of retailers, moreover putting immoderate retired of business. Amazon and different online retailers person besides wounded accepted brick-and-mortar stores.

Conn’s HomePlus, a 134-year-old furnishings and electronics retailer, precocious revenge for bankruptcy and is successful nan process of closing each of its stores. Bob’s Stores and 99 Cents Only Stores besides went retired of business earlier this year.

Shares of Big Lots (BIG) are down astir 90% for nan year.