Big Lots to Close 35 to 40 Stores Amid Bankruptcy Concerns
Retailer Faces Financial Challenges and Shrinking Customer Base
Company Plans to Shutter Stores and Focus on E-commerce
Discount retailer Big Lots has announced plans to close between 35 and 40 stores this year, prompting concerns about the company's financial stability. The Ohio-based chain has been facing declining sales and increased competition, leading to speculation that it may be at risk of bankruptcy.
In a recent SEC filing, Big Lots said it may have to file for bankruptcy protection if it is unable to improve its financial performance. The company has seen a decline in foot traffic and sales, and it has struggled to keep up with online competition from retailers like Amazon.
In an effort to cut costs and improve profitability, Big Lots plans to close stores that are underperforming. The company also plans to focus more on its e-commerce business, which has been growing in recent years.
The store closures will affect approximately 1,000 employees. Big Lots said it will provide severance and job placement assistance to affected workers.
Big Lots' decision to close stores is part of a broader trend in the retail industry. Several other retailers, including JCPenney, Bed Bath & Beyond, and Macy's, have announced store closures in recent months due to financial challenges.
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