Big Lots is an American retail company headquartered in Columbus, Ohio. The company was founded in 1967 by Sol A. Shenk and today operates more than 1,400 stores in 47 states. Big Lots is a closeout retailer, meaning it offers products at significantly lower prices than other retailers.
For years, Big Lots was one of the retail industry’s best-kept secrets. But in recent years, the company has struggled to keep up with the changing retail landscape. Big Lots has been slow to embrace e-commerce and has been saddled with a high debt burden.
These challenges have led to concerns about the company’s financial health. In March 2018, Big Lots announced it was exploring “strategic alternatives,” including a possible sale of the company. But no buyers have emerged and the company has continued to struggle.
In its most recent quarter, Big Lots reported same-store sales that were below expectations and announced plans to close 30 stores. The company’s stock price has fallen sharply over the past year, and its credit rating has been downgraded by multiple rating agencies.
These challenges have led many to wonder: Is Big Lots in financial trouble?
The answer is complicated. While the company is facing some significant challenges, it also has a number of strengths that give it a good chance of weathering the storm.
Big Lots has a large store base, a loyal customer base, and a strong balance sheet. These factors give the company some cushion as it works to turnaround its business.
That said, the company is not without its risks. Its debt burden is high, its same-store sales are weak, and it faces intense competition from both traditional retailers and e-commerce giants like Amazon.com (AMZN).
only time will tell whether Big Lots can overcome these challenges and return to profitability.
