Big Lots to Close Stores Amidst Financial Struggles
Discount retailer to shutter 35 to 40 locations due to worsening financials and a challenging consumer environment.
Bankruptcy concerns loom as the company expresses "substantial doubt" about its ability to continue operating as a going concern.
Ohio-based Big Lots, one of the latest retail casualties, plans to close a significant number of its stores this year as the industry continues to grapple with economic headwinds. The retailer announced that it will shut down 35 to 40 locations due to deteriorating financial performance and a tough consumer climate.
Big Lots joins a growing list of discount retailers facing financial distress in 2023. Just a few months ago, 99 Cents Only filed for bankruptcy protection, highlighting the challenges faced by businesses in this segment.
The company's financial statements have raised concerns about its ability to remain viable. In its latest financial report, Big Lots expressed "substantial doubt" about its ability to continue operating as a going concern, indicating that it may have difficulty meeting its financial obligations.
As a result of these challenges, Big Lots has warned that it may declare bankruptcy if necessary. The store closures will help reduce costs and potentially enable the company to continue operating, but the future of the discount retailer remains uncertain.
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