Ohio-based discount retailer Big Lots may have to close more stores, according to a recent filing in its Chapter 11 bankruptcy case, as reviewed by Newsweek.
The potential for more store closures comes after a fifth notice was filed in bankruptcy court.
Newsweek reached out Wednesday via email to Big Lots' press team for comment on Wednesday.
Is Big Lots Closing More Stores?
On Monday, the fifth notice of store closures was filed in U.S. Bankruptcy Court for the District of Delaware, proposing the closure of more than a dozen Big Lots stores.
The 19 new closures include five stores in California, three stores in Texas and Oregon, two in Florida and Nevada, and single stores in Georgia, Idaho, Arizona and Washington. The closures would affect Atlanta, San Antonio, Phoenix, Los Angeles, Las Vegas and Florida's Orlando, among other cities.
Big Lots, referred to as "the debtors," has until 4 p.m. ET on Saturday to file an objection to the proposed closures, according to the court document. If no objection is filed and there is no court intervention, Big Lots is authorized to commence the process of store closing sales for the 19 stores across the country.
Before this announcement, Big Lots had announced the closure of nearly 500 stores. The Hill reports that at least 140 of those stores have already been closed, and many are set to close by January 2025. California will have the most stores closed, with 75 out of 109 set to be shuttered in the state.
In August, when a big wave of store closures were announced, a Big Lots spokesperson told Newsweek the move is part of a broader strategy to stabilize the company financially.
The company's filings with the Securities and Exchange Commission reveal that these closures come as Big Lots grapples with significant debt and declining sales. High inflation and stiff competition have dampened consumer spending at retail chains.
When Did Big Lots File for Chapter 11 Bankruptcy?
On September 9, Big Lots filed for Chapter 11 bankruptcy protection. At the time, the company operated about 1,300 stores nationwide, but that number has been dropping significantly since the filing.
The company reported a net loss of $205 million for the first quarter of 2024 and an increase in long-term debt to $573.8 million.
Who Owns Big Lots?
In a September 9 press release, Big Lots said it entered into a sale agreement with an affiliate of Nexus Capital Management for approximately $760 million, consisting of $2.5 million in cash plus payoff of remaining debt and assumption of liabilities.
The retailer was co-founded by Michael Cohen and Damian Giangiacomo in 2013.
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