Another brick-and-mortar retailer is in serious trouble.
The Columbus, Ohio-based discount retailer Big Lots announced in a U.S. Securities and Exchange Commission filing that it plans to close 35 to 40 stores. Big Lots dates to 1967.
But it gets worse. Big Lots warned the SEC it might not be able to pays its debts and stay in business.
“However, based on our current cash and liquidity projections, and uncertainties with respect to the mitigating effect of management’s plans, the company has concluded there is … substantial doubt about the company’s ability to continue as a going concern,” Big Lots said in the SEC filing.
But Big Lots is not throwing in the towel just yet. The company is trying to raise the money needed to remain a going concern, including by selling off real estate.
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Big Lots plans to drive sales by offering deeper discounts and cutting operating costs.
“The company also plans to drive significant improvements in sales and profitability through our key strategic actions, which include, among others, our actions to increase penetration of extreme bargains and closeouts, improve merchandise presentations that highlight our best deals and encourage basket growth and visit frequency,” Big Lots said in the SEC filing.
