Big Lots has announced plans to close up to 315 stores nationwide, according to a recent regulatory filing with the Securities and Exchange Commission. This move marks a significant increase from the previously allowed limit of 150 store closures. Alongside these closures, Big Lots outlined new loan terms that involve a reduced credit limit and a higher interest rate.
The company, which currently operates approximately 30 stores in Louisiana, has confirmed that four locations in the state will be among those shutting down. The Bossier City, Lafayette, Natchitoches and Denham Springs locations are slated to close.
In July 2024, Big Lots, Inc. (NYSE: BIG) reported a net loss of $205.0 million, or $6.99 per share, for the first quarter of fiscal 2024, which ended on May 4, 2024. This loss included a net after-tax loss of $72.7 million, or $2.48 per diluted share, due to impairment charges, fees related to Project Springboard, and costs from closing distribution centers. Excluding these charges, the adjusted net loss for the first quarter of 2024 was $132.3 million, or $4.51 per diluted share. In comparison, the adjusted net loss for the same period in fiscal 2023 was $98.7 million, or $3.40 per diluted share.
Founded in 1967, Big Lots saw significant growth over the decades but has faced financial difficulties in recent years, reflecting broader challenges in the retail sector. This struggle is underscored by a recent announcement of plans to open three new stores while closing 35 to 40 locations within the year. The company has also projected further operating losses and expressed “substantial doubt” about its long-term viability.
In an emailed statement to CBS News, a Big Lots spokesperson noted that the company intends to support employees affected by the closures by offering opportunities to transfer to other locations and providing severance packages for those unable to relocate.
