Big Lots will close up to 40 stores (on top of 52 last year) as it mulls bankruptcy

Gaius · 2024-07-11T13:29:09.576Z

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The company seems to be blaming inflation, but I doubt that’s it.
True, Big Lots is a discounter and the low-end consumer is hurting
But I think the real story is that furniture retailers have been hit HARD (probably because of the housing market) and although Big Lots sells evything from chips to candles, a lot of its business is furniture related.

From NYPost:

Discount retailer Big Lots to shutter stores, may go bankrupt

Discount home goods retailer Big Lots revealed it is planning to shutter more stores this year and may be facing permanent closure – the latest major chain to face financial ruin as inflation-battered shoppers pull back on spending.

The Ohio-based company – which has around 1,400 stores nationwide – disclosed dismal fiscal reports in a June SEC filing and said it plans to close between 35 to 40 stores this year, following the 52 stores closed in 2023.

The Big Lots report said “elevated inflation” has put a damper on customers’ “buying power” – resulting in big losses for the company and “substantial doubt” about its ability to continue operations. . . .

Big Lots to close stores, may file for bankruptcy

Safiel · 2024-07-11T16:06:09.529Z

Tuesday Morning is gone, Big Lots is struggling, but Ollie’s Bargain Outlets seems to be thriving. All three had the same basic business model, but Ollie’s seems to have done it the best.

LucyLou · 2024-07-11T17:23:30.854Z

Have never shopped at those types of stores. Not even sure of what they carry. Other than random junk, I guess.

Gaius · 2024-07-11T17:40:27.898Z

Safiel:

Tuesday Morning is gone, Big Lots is struggling, but Ollie’s Bargain Outlets seems to be thriving. All three had the same basic business model, but Ollie’s seems to have done it the best.

I am not super familiar with either Big Lots or Ollies,
but for now I’m gonna go with
“Ollies is an acutal discounter”
and
“Big Lots is a furniture store, whether the CEO knows it or not.”

Furniture stores are in the 7th level of hell right now.

Chart below shows inflation-adjusted retail sales
vs inflation adjusted retail sales at furniture stores.

image1792×895 172 KB

Safiel · 2024-07-11T17:58:31.738Z

LucyLou:

Have never shopped at those types of stores. Not even sure of what they carry. Other than random junk, I guess.

If you have an Ollie’s in your area, check it out. They do have good bargains on essential and not so essential everyday items, as well as varying stock of other consumer items.

I met the founder, Oliver Rosenberg, a couple of years before his death at an event in Harrisburg.

image1280×1945 137 KB

That is him posing with one of about the ten million caricatures of him that you will see in an average Ollie’s.

Worth the visit, if you have one nearby.

Gaius · 2024-07-11T18:03:31.080Z

Safiel:

LucyLou:

Have never shopped at those types of stores. Not even sure of what they carry. Other than random junk, I guess.

If you have an Ollie’s in your area, check it out. They do have good bargains on essential and not so essential everyday items, as well as varying stock of other consumer items.

I met the founder, Oliver Rosenberg, a couple of years before his death at an event in Harrisburg.

image1280×1945 137 KB

That is him posing with one of about the ten million caricatures of him that you will see in an average Ollie’s.

Worth the visit, if you have one nearby.

Ollie was a local legend.
A real character.
Never lost kid-like coolness.

TheRedComet · 2024-07-11T18:03:32.266Z

Those shorts are something else.

Safiel · 2024-07-11T18:07:32.739Z

Gaius:

Ollie was a local legend.
A real character.
Never lost kid-like coolness.

I only got to meet him that once, but yes, a real nice guy and a legend to boot.

Safiel · 2024-09-09T05:40:23.826Z

Big Lots formally filed bankruptcy on Sunday.

They made a stalking horse agreement with Nexus Capital to buy the the company.

Even so, the odds do not look that good and I suspect that this will end with a conversion to Chapter 7 liquidation.