SEC Report: Big Lots Struggling to Stay Afloat

The pain felt among American retailers continues as Big Lots reported in a recent Securities and Exchange Commission filing that its ability to continue operations faces challenges as a "going concern."

"Based on our current cash and liquidity projections, and uncertainties with respect to the mitigating effect of management's plans, the Company has concluded there is a significant likelihood that it will be unable to comply with the Excess Availability Covenant under the 2022 Credit Agreement and the Term Loan Facility within the next 12 months, which raises substantial doubt about the Company's ability to continue as a going concern," the retail chain of 1,389 stores across 48 states told the SEC in a filing on Thursday.

Since 2020, during the height of the COVID-19 pandemic, Big Lots began invoking, according to their reports, an Environmental, Social, and Governance approach to their business model. Last year, Big Lots closed 52 stores, according to the Daily Mail. This year, so far, they closed 13.

The company is struggling; others are as well. In 2024 alone, roughly 2,600 retailers, among which include big names such as Walmart, Walgreens, Macy's, Foot Locker, and 7-Eleven, have all reported closing stores, Daily Mail reported.

The companies have been left exposed as Americans continue to cut back amid enduring inflation. Adding to the quandary, Big Lots store managers have complained on Reddit that their corporate office keeps sending more and more stock to their stores that customers just don't buy.

"In the last month we received four of the largest trucks we have seen all year and triple the amount we normally get," one apparent manager wrote on Tuesday. "The warehouse is pretty much full to capacity and none of [it] is selling."

"Isn't that the weirdest thing?" another added. "So much stuff, but none of it is what people want. Perhaps instead of blowing our budget on cheap garbage nobody wants, corporate will look into what's popular and will only buy that."