ORLANDO, Florida. – Big Lots is struggling with serious financial challenges that have led the company to plan to close 315 stores across the country.

Last month, the company expected to close 35 to 40 stores in 2024. But rising debts and falling sales –is reflected in a sales decline of almost 10% in the first quarter of 2024 compared to the previous year– have forced more drastic measures.

The news of the almost tenfold increase in store closures came a recent filing of Form 8-K (August 2) with the Securities and Exchange Commission.

The closures will hit California hardest, with 75 stores closing, followed by Florida (26 stores), Arizona (18 stores) and Washington (also 18 stores). Broward County will lose five stores, Palm Beach County three stores and Central Florida (Orange and Volusia Counties) four stores.

The closures are part of Big Lots’ broader efforts to stabilize its finances by reducing operating costs and improving liquidity.

The company’s problems became more apparent after it secured a loan of 200 million US dollarsbut now it faces the challenge of repaying the loan next year, increasing the risk of default. Despite implementing cost-cutting strategies and attempts to increase sales, Big Lots is struggling to get back on its feet financially, raising doubts about its long-term viability.

The decision to close these stores not only reflects the retailer’s need to conserve resources, but also underscores the broader challenges many brick-and-mortar retailers face in competing with e-commerce giants such as Amazon, Alibaba, eBay and Wayfair.