A massive discount chain now prepares for bankruptcy following years of declining sales and economic challenges.
Big Lots has been facing significant challenges in recent quarters, with CEO Bruce Thorn noting that a struggling economy has negatively impacted customer sentiment and profits.
In the first quarter, the company experienced a 10.2% decline in sales, totaling $1.01 billion, and reported a loss of $132.3 million.
“While we made considerable progress in improving our operations during Q1, we fell short of our sales targets mainly due to a continued decrease in consumer spending among our core customers, especially on higher-priced discretionary items,” Thorn explained.
The retail chain intends to continue operating under bankruptcy protection and is looking for a stalking-horse bidder for a potential sale or auction, reports The Street.
With approximately 1,400 stores, Big Lots announced in July plans to close a total of 315 underperforming locations.
On August 12, the company indicated a possible impending bankruptcy filing, as its board approved one-time cash retention bonuses totaling $5.24 million for four top executives, a common strategy before filing for bankruptcy.
The bonuses included $3.15 million for CEO Bruce K. Thorn, $969,938 for Chief Financial and Administrative Officer Jonathan A. Ramsden, and $561,068 each for Chief Legal and Governance Officer Ronald A. Robins Jr. and Chief Human Relations Officer Michael A. Schlonsky.
On September 6, Big Lots postponed its second-quarter earnings release, rescheduling it for September 12.
Over the past year, the company’s stock price has plummeted by nearly 94%.
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Also Read: Another Mall Clothing Retailer Now At High Risk of Bankruptcy
Other Economy News Today
A massive rental company with 34k locations now shuts down its operations after filing for bankruptcy and 22 years in business.
Users of movie rental company Redbox were left saddened after it was announced that it would be shutting down operations.
The announcement comes after the rental company’s parent company, Chicken Soup for the Soul Entertainment, filed for Chapter 11 bankruptcy.
According to court documents obtained by the Washington Post, the Connecticut-based company claimed to be one billion dollars in debt.
As a result, Redbox, which was a staple of many grocery stores including Walgreens, and CVS will be shuttered.
Many fans took to social media to express how upset they were with the loss.
“I knew it was coming, sadly,” UltraVada wrote in a post on X, formerly Twitter.
“It was inevitable,” a second person mourned.
“I knew this would happen when I heard they filed for Bankruptcy but its still sad to hear. I have a lot of fun memories of Redbox,” a third person lamented.
“I still don’t think this will be or ever be the end of physical media as we do still get remasters of some movies in 4k/Bluray.”
One person revealed that they had forgotten the rental service had existed.
Some users were not surprised by the announcement.
“Not surprised since nobody really rents videos anymore with the rise of streaming and what not,” one user admitted.
“Also kinda remember getting into a feud with them on here.”
One user also pointed out that the last remaining Blockbuster, located in Bend, Oregon, managed to outlive Redbox.
Redbox was acquired by Chicken Soup for the Soul Entertainment (CSSE) in 2022 and became one of the company’s flagship video-on-demand streaming services.
At its peak, CSSE operated more than 20,000 DVD rental kiosks across the country.
The company’s filing means that the company’s more than 1,000 employees will be laid off, per The Wall Street Journal.
It was also reported by Deadline that many employees at CSSE hadn’t received their paychecks and had medical benefits cut in late June.
Also Read: This Massive Mall Retailer Is Now Closing In California
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