Big Lots Shuttering Nearly 300 Stores Nationwide, 10 in Michigan Affected
Following the disclosure of plans to discontinue operations at 35 to 40 outlets earlier this year, Big Lots, the discount retailer, now confirms a considerable expansion of the nationwide closing list to nearly 300 stores. Notably, this shutdown wave will entail the closure of 10 stores in Michigan.
A Chain-Wide Closure
Based out of Columbus, Ohio, Big Lots operated over 1,392 stores across 48 states, as stated in the company’s filing to the U.S. Securities and Exchange Commission in June 2024. In the document, the brand also unfolded its blueprint to launch three new outlets. However, under the shadows of persistent closures, the future of these stores remains uncertain.
Big Lots boasts of the operation of 46 outlets in Michigan alone, out of which 10 have been flagged for closure on the company’s website. Each of these store’s webpages is marked with distinctive banners indicating the imminent closure.
Michigan Stores Facing Closure
- Coldwater: 373 N. Willowbrook Rd.
- Holland: 2353 N. Park Dr.
- Howell: 3669 E. Grand River Ave.
- Kentwood: 4254 28th St. Se
- Lansing: 5625 W. Saginaw Hwy, Unit 1
- Madison Heights: 32399 John R Rd.
- Okemos: 2020 Grand River Ave.
- Petoskey: 1401 Spring St.
- Portage: 6207 S. Westnedge Ave.
- Ypsilanti: 2850 Washtenaw Ave.
The Struggle Against Losses
Within the filing, Big Lots articulated encountering net losses sequentially for three years – in 2022, 2023, and the first quarter of 2024. The company expressed concerns regarding persistent adverse macroeconomic factors and their uncertain impacts on business operations.
Big Lots highlighted its misgivings about the effects of ongoing economic headwinds on its cash flows and operating losses. It also raised a red flag over potential difficulties in maintaining compliance with several covenants.
In response to these challenges, Big Lots announced that the organization is unfolding plans to decrease costs, boost sales, and enhance its financial flexibility and liquidity.
Economic Challenges and the Threat of Bankruptcy
Throughout 2024, the company faced a slew of macroeconomic challenges such as elevated inflation, which has substantially diminished the purchasing power of its customers. In the filing, Big Lots also openly questioned its ability to continue operations amidst such turmoil and presented “substantial doubt,” thereby sparking speculation about a possible bankruptcy filing in the near future.
