Home goods discounter Big Lots is reportedly on the brink of bankruptcy after years of declining sales.
The troubled chain could file for Chapter 11 protection within weeks, according to Bloombergif it cannot find investors.
The Ohio-based company has about 1,400 stores in the U.S. after closing hundreds of locations earlier this year.
Shares of Big Lots fell as much as 50 percent on Thursday morning, trading at $0.56 per share at the time of publication.
CEO Bruce Thorn warned during the company’s latest earnings report that Americans are cutting back on big-ticket items, particularly furniture, which is hurting sales.
Home goods discounter Big Lots is reportedly on the brink of bankruptcy after years of declining sales and store closings (Pictured: A store closing in Manassas, Virginia)
Big Lots received a loan earlier this year to help it deal with its liquidity problems, Bloomberg reported, and in recent weeks the company has sought additional financing.
The chain has seen its revenues decline consistently over the past 10 quarters, losing a staggering $132 million in the first three months of 2024.
Company representatives did not respond to requests from the outlet for comment on the plans.
This comes after Big Lots identified dozens of locations in states including Connecticut, Massachusetts, Michigan, New Hampshire and Vermont that are on the verge of closing.
Earlier this month, stores that When the chain went bankrupt, a banner with the text ‘closure of this location’ was placed on the chain’s website websitewith a 20 percent discount.
The latest closures come on top of 40 other stores that closed their doors in June.
Regarding the closures, a company spokesperson told Retail Dive earlier this month: “While the majority of our stores are profitable, we have made the difficult decision to close certain underperforming stores.”
“We are confident that the steps we are taking will put the company in the best position for the future, returning to our roots, focusing on owning the bargain market and delivering undeniable value to our customers.”
During Big Lots’ latest earnings presentation, CEO Bruce Thorn said the company is looking to expand its ultra-affordable offerings as Americans cut back on big-ticket items.
“We think Big Lots is in a tough spot,” Joe Feldman, an analyst at Telsey Advisory Group, said in a statement at the time.
Big Lots shares fell as much as 50 percent on Thursday morning, hitting $0.56 per share at the time of publication.
The store sells furniture and household items in addition to toys, beauty products and groceries
Big Lots is known for its discounted items
On Reddit, Big Lots store managers are complaining that they are increasingly receiving inventory that customers are not buying.
“This past month we have received four of the largest trucks we have seen all year, three times the normal number,” one wrote.
The warehouse is almost full and no one from [it] is selling.’
Another posted: ‘Isn’t that the weirdest thing? So much stuff, but none of it is what people want.’
The troubles for Big Lots come amid a widespread “retail apocalypse,” with stores struggling with declining consumer traffic and increasingly tight margins.
In the first four months of 2024, there were almost 2,600 store closuresIf this trend continues, nearly 8,000 people will have died by the end of the year.
In recent months, Walmart has closed three more of its underperforming locations, while Best Buy closed ten in march.
Dollar stores have also been hit hard: 99 Cents Only announced in April that it would close all 371 of its locations in California, Texas, Arizona and Nevada.
The 1,000 closures of Family Dollar and its sister company Dollar Tree will take place over the next three years.