Big Lots Inc (NYSE:BIG) secured a $200 million loan earlier this year; now, it’s reaching out to potential investors to explore interest in a new loan backed by assets like the company’s leases.
The discount home goods chain, which operates nearly 1,400 stores, has faced years of declining same-store sales, reported Bloomberg.
To combat these challenges, Big Lots has shifted its focus back to extreme bargains and closeout sales after a strategic pivot to furniture sales faltered due to a decline in new home sales and renovations.
For the quarter ending May 4, Big Lots reported a 10.2% drop in net sales to approximately $1.01 billion compared to the previous year.
CEO Bruce Thorn attributed the downturn to a “challenging consumer environment” and “strained budgets” during the company’s first-quarter earnings call. The retailer posted a net loss of $205 million for the period.
In addition to returning to its roots in bargain sales, Big Lots is considering sub-leasing some of its locations to generate more revenue.
Columbus, Ohio-based Big Lots is not alone in facing difficulties within the retail sector due to a slowdown in home spending.
Conn’s Inc.(NASDAQ:CONN), another furniture retailer, recently filed for bankruptcy, while LL Flooring Holdings Inc. is contemplating a Chapter 11 filing.
Price Action: BIG shares are trading higher by 1.83% at $1.11 in premarket at last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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