Big Lots, the discount retail chain, is set to close several stores nationwide, including three in Maryland, after reporting substantial financial losses for the first quarter of 2024. The company attributed the closures to a significant downturn in sales and potential credit issues.
The following Maryland stores are slated for closure:
Laurel: 3331 Corridor Marketplace
Lexington Park: 21800 N. Shangri La Drive, Unit 20
Reisterstown: 11989 Reisterstown Road, Ste. A
No specific timeline has been provided for when these stores will close their doors. The decision comes as part of a broader plan by Big Lots to shut down 35 to 40 stores across the country while opening only three new locations this year, as reported by the Florida Times Union. This strategy follows a reduction in the total number of Big Lots stores from 1,425 in the first quarter of 2023 to 1,392 at the start of 2024.
Big Lots President and CEO Bruce Thorn stated that the company fell short of its sales goals, primarily due to a decrease in consumer spending on high-ticket discretionary items by its core customers. Last month, the company reported a net loss of $205 million for the first quarter of fiscal year 2024. In a filing with the Securities and Exchange Commission (SEC), Big Lots indicated a “significant likelihood” that it may not meet the terms of its credit agreement, raising concerns about the company’s future financial stability.
Despite these closures, Big Lots will maintain several other locations in Maryland, including stores in:
– Bowie
– Capitol Heights
– Catonsville
– Chester
– Cumberland
– Dundalk
– Easton
– Edgewood
– Elkton
– Frederick
– Frostburg
– Germantown
– Glen Burnie
– Hagerstown
– Hanover
– Middle River
– Montgomery Village
– Parkville
– Prince Frederick
– Rising Sun
– Salisbury
– Waldorf
– Westminster
The closures come amidst a broader trend of declining sales for the company. Between the first quarters of 2023 and 2024, Big Lots experienced a 10.2% drop in sales, amounting to a loss of approximately $114.5 million. This downturn has forced the company to reevaluate its operational strategy and streamline its store footprint to mitigate further financial losses.
In a recent SEC filing, Big Lots officials expressed “substantial doubts” about the company’s ability to continue as a functioning business. This candid admission underscores the severity of the financial challenges facing the retailer and the urgency of its efforts to stabilize its operations
As Big Lots navigates these turbulent times, the focus will be on bolstering its financial health and reassessing its business model to adapt to changing consumer behaviors. The company’s ability to weather this storm will depend on its strategic decisions in the coming months, including how it manages its store closures and any potential restructuring efforts.
For now, customers in Maryland can continue to shop at the remaining Big Lots locations, but the future of the discount retail chain remains uncertain as it grapples with significant financial hurdles.
