Big Lots to Close More Than 300 Stores

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NOTORIOUS B.I.G.

Big Lots to Close More Than 300 Stores (Read More)

Big Lots is embarking on a significant downsizing initiative. The Ohio-based discount retailer, which operates around 1,390 stores nationwide, has announced plans to close over 300 stores, with California facing the most significant impact.

Key Highlights

• Total Stores Affected: Over 300 out of 1,390 stores nationwide

• California Impact: 75 of 109 stores to close

• Texas Impact: No closures planned for the 116 stores in Texas

Details of the Downsizing

• SEC Filing Update: Up to 315 stores may close due to amended credit and loan terms

• Previous Plans: Initial plan to close 35-40 stores in 2024

• Going Concern Warning: Company raised concerns about its ability to continue operating

Financial Adjustments and Impact

• Credit Reduction: Available credit reduced from $900 million to $800 million

• Increased Borrowing Costs: Interest rate on borrowing increased by 50 basis points

• Reporting Frequency: Company must report more frequently to its lenders

Recent Financial Performance

• Sales Decline: Sales dropped 10.2% to $1 billion in Q1 ending May 4

• Comparable Sales: Decrease of 9.9%

• Consumer Spending: Decline attributed to reduced spending by core customers

This downsizing marks a critical phase for Big Lots as it navigates financial difficulties and attempts to stabilize its operations. The company will continue to focus on improving liquidity and operational efficiency amid these challenging times.

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