Big Lots announces it will close 300 stores to pay debts

Big Lots to Close 300 Stores

35 States Affected by Closures

$573 Million Debt Driving Decision

A national discount chain with hundreds of stores across the country has recently announced the closure of 300 locations.

Among these 300 stores are five key locations.

Big Lots initially announced earlier this summer that it would close between 35 and 40 underperforming stores.

However, a new SEC filing revealed that approximately 315 stores are now set to close.

Big Lots Announces Closure of 300 Stores

Big Lots to Close 300 Stores PHOTO: Shutterstock

The company will shutter all five of its branches in Tucson, Arizona, leaving the city without a physical Big Lots store.

This information was reported by Tucson.com. The retail chain stated that the store closures are part of an effort to help pay down its $573 million debt.

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In total, 35 states will see Big Lots locations closing. As of August 7, the company’s stock was trading at $0.90 per share.

In January, shares were trading at a high of $8 per share. However, January’s peak is nothing compared to the store’s share price in March 2021, which was $68 per share.

California will be the most affected by the closures. It is expected that 75 of its 109 stores in California will close, according to Fast Company.

Stores scheduled for closure already have signs posted that read “THIS LOCATION CLOSED.”

These closures represent a significant loss for local communities. Many residents rely on Big Lots for affordable shopping.

The closing of these stores could increase financial pressure on families. Additionally, employees of these stores will face job uncertainty.

The Decision by Big Lots

Big Lots has been a popular option for budget-friendly shopping. The closure of so many stores raises questions about the long-term viability of the chain.

The company’s significant debt has been a key factor in these closures. Big Lots is taking drastic measures to restructure its finances.

The decision to close stores is part of this strategy, according to The US Sun.

However, this move could have negative consequences.

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