Big Lots to Close 40 Stores This Year
Amid Doubts, Discount Retailer Faces Challenges
Breaking News
Ohio-based discount retailer Big Lots has announced plans to close up to 40 stores this year. The announcement, made in a filing to the U.S. Securities and Exchange Commission (SEC), has raised concerns about the company's financial stability and ability to survive in an increasingly competitive market.
The store closures come as Big Lots faces mounting debt and declining sales. The retailer has struggled to keep up with the changing retail landscape, which has seen a shift towards online shopping and the dominance of large national chains. Big Lots also faces intense competition from other discount retailers such as Dollar General and Five Below.
The company said in the SEC filing that it will close between 35 and 40 stores that are "underperforming." It will also open three new stores, but these are unlikely to offset the revenue lost from the closures.
The news of Big Lots' store closures sent its stock price tumbling. Shares fell more than 10% in after-hours trading on Friday. Analysts say the closures indicate that the company is in financial distress and may struggle to survive without major changes to its business model.
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