Big Lots Set to Close Stores Amid Growing Bankruptcy Concerns

35-40 Locations to Shut Down in 2023

In a move that has raised eyebrows and sparked speculation about the company's future, discount retailer Big Lots has announced plans to close 35 to 40 stores this year. The Ohio-based retail chain, which currently operates over 1,300 stores, reported 1,329 locations at the beginning of the year, down from 1,425 in the first quarter of 2023. The decision to shutter these stores comes as Big Lots faces mounting financial challenges, including elevated inflation and a decline in consumer spending.

Bankruptcy on the Horizon?

The store closures have prompted concerns about Big Lots' long-term viability, with some analysts speculating that bankruptcy could be on the horizon. In an SEC filing, the company acknowledged the possibility of filing for bankruptcy protection and stated that it is actively considering various restructuring options. The filing did not specify the locations of the stores that will be closing, but it is expected that the closures will impact communities across the United States.