A MAJOR discount retailer is shutting down another store as part of its bankruptcy process, in a sign of escalating strain on the retail sector.
Big Lots will close down its Phenix City store in Alabama as part of an ongoing shut down of more than 40 stores in 25 states this year.
Discount retailer Big Lots filed for Chapter 11 Bankruptcy in September[/caption]
The store closures were revealed in documents filed in October as part of the brand’s ongoing bankruptcy process.
Other impacted stores include retail spaces in Florida, Texas, California, New Jersey, and Oklahoma.
The brand has already announced plans to shut down other Alabama stores in Bessemer, Huntsville, Prattville, Sylacauga, and Troy according to AL.com.
The store closures come after the major retailer filed for Chapter 11 bankruptcy protection in September, announcing it would shut down more than 340 of its 1,400 shops across the country.
More than 30 stores have already closed and been removed from the discount retailer’s website.
The retailer has advertised huge clothing sales and advised customers they can get up to 20% off certain items.
RETAIL APOCALYPSE
Big Lots is among a number of major retailers suffering across the country as the sector grapples with changing consumer behavior, the rise of e-commerce, and inflationary pressures sparked by the pandemic.
With a raft of brick-and-mortar stores shuttering across the nation, retail experts say many chains are in financial strife due to increased borrowing costs and consumers tightening their wallets.
According to analysis by retail data provider CoreSight, there has been a 24% increase in store closures in 2024 alone.
In September, Big Lots entered into a sale agreement with investment firm Nexus Capital Management.
Announcing the move, Big Lots president Bruce Thorn said the retailer would move forward with a “more focused” retail footprint to ensure it remained profitable.
“To accomplish this, we intend to use the tools afforded by this process to continue optimizing our store fleet in an orderly manner,” Thorn said in September.
The discount retailer said store closures were part of a plan to “aggressively address underperforming stores”.
The struggling retailer has been grappling with a drop in sales over the past few years, with net sales down $114.5 million in the first quarter of 2023.
Though the majority of our store locations are profitable, we intend to move forward with a more focused footprint to ensure that we operate efficiently and are best positioned to serve our customers
Bruce Thorn
Nexus’ initial bid on the company sets a minimum price for the sale and serves as a benchmark for other potential buyers to outmatch.
Concerns for the struggling retailer remain, with some experts questioning whether it can compete against larger chains including Walmart and Target.
CUSTOMERS FUME
The rapid downsizing of its retail footprint has sparked anger among customers and employees.
The U.S. Sun has previously reported frustration among loyal Big Lots shoppers.
Customers in September took to social media to express their dismay.
One user said: “Why why I go cry.”
Another commented: “Sign of the times.”
And: “And the hits keep coming!”
The deadline for submitting bids on Big Lots is October 15.
