About 300 more Big Lots stores are expected to close amid speculation the company may file for bankruptcy.
In early July, Big Lots warned in a filing with the U.S. Securities and Exchange Commission (SEC) that between 35 and 40 stores could close this year. In a new filing with the SEC on July 31, Big Lots said the total number of closures could reach 315, significantly more than the originally agreed number of 150.
Citing inflation and competitive difficulties, management said it had “significant doubts” about its ability to continue operating. Between the first quarters of 2023 and 2024, Big Lots reported a sales decline of more than 10%.
Big Lots has not yet released a full list of stores that will close, but signs have already appeared at affected locations. As of Wednesday, about 300 stores have banners on their websites saying “This location will close” and telling customers they could “save up to 20%.”
In the Sacramento area, one of the stores affected is the North Highlands store. The closure of these local Big Lots stores is a major blow to the communities that rely on these stores for inexpensive goods. Residents of North Highlands and Rio Linda will have to find alternative shopping options, potentially involving longer commutes and higher costs.
Big Lots has not said when these stores will close, and a representative did not immediately respond to our request for comment. It’s also unclear why Big Lots chose these specific stores to close.
Big Lots currently has 1,389 stores in 48 states (only Alaska and Hawaii have no stores). If Big Lots were to close the planned 315 stores, the company would lose nearly 23% of its retail operations. The Columbus, Ohio-based company was founded in 1967, but it wasn’t until 2001 that all of its stores were renamed Big Lots.
The Ohio-based discount retail chain’s latest closure affects more than 300 stores nationwide, including some in the Sacramento area:
- Ceres
- Chino
- Elk Grove
- Fontana
- Freedom (Watsonville)
- Fresno (West Shaw Avenue and Kings Canyon Road)
- Gardena
- La Habra
- Lodi
- Mission Viejo
- Northern Highlands
- Oroville
- paradise
- Spring Valley
- Torrance
- Victorville
- Whittier
- City
- Yucca Valley
In a July 31 filing with the U.S. Securities and Exchange Commission (SEC), Big Lots said it plans to increase the number of store closures from 150 to 315 in the event of a potential bankruptcy.
“In 2024, the U.S. economy will continue to face macroeconomic challenges, including increased inflation, which has negatively impacted the purchasing power of our customers,” Big Lots wrote in a recent quarterly report.
The retail chain said it had “significant doubts” about its ability to survive in light of falling sales and high costs.
Which Big Lots stores are closing in the Sacramento area? Big Lots recently updated its website to show upcoming store closings. The Big Lots store in Roseville will remain open, according to the website.
Big Lots joins a list of restaurants and retail chains that have abruptly closed locations in the area due to financial concerns, including Red Lobster, Cracker Barrel, Rue 21 and Rite Aid pharmacies.
There are currently over 1,000 Big Lots stores open in the United States, including 109 in California.
