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From Sears in Kmart , the retailers of formerly giant mass goods have struggled to remain afloat over the past decade. The Big Lots reduction chain has proven not to be an exception: the retailer closed more than 50 stores in the United States last year, and closings continued in 2024. Now, experts warn that the future De Big Lots seems "very worrying" some people wonder if the store could disappear for good.

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In December 2023, Big Lots reported the 10th consecutive quarter in which its sales with comparable stores had decreased. The next financial results report will be published on March 7 and will cover the results of its fourth quarter and the full financial year in 2023.

Big lots president and chief executive Bruce Thorn gave an early look In the company's performance in a press release on February 12, declaring that their fourth quarter results "in accordance with [its] indications on comparable sales, the gross margin rate, operating expenses and the inventory".

Despite this, the actions of the company took a major fall February 12, as a capital loop analyst Anthony Chukumba warned investors to sell. He dropped from 31% to $ 3.72, which is his most important percentage drop Barron .

"We believe that the big prizes have lost a relevance and a spirit of mind of substantial consumers Note to customers , by Marketwatch. He added that he was "skeptical" of the return of business merchandise to good deals and treasure hunting due to changes in the competitive landscape.

In addition to the loss of relevance of Big Lots, Chukumba said that the company was also in a "precarious" financial situation. Bloomberg Reported on February 9 that the retail chain had stretched out the banks and investors to obtain new funding in the midst of the ongoing losses and down the liquidity, according to the names who know the plans of the company.

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Last August, the media also reported These big prizes had started to work with the Alixpartners LLP consultants for operational aid when he was trying to tackle costs while his income continued to shrink.

A few months later, Thorn provided an update on the company's recovery efforts in a Third trimester call for results with investors. AE0FCC31AE342FD3A1346EBB1F342FCB

"Our trajectory continues to improve and we have delivered in the face of the difficult consumption environment," he said at the time.

The CEO also said that he thought that large lots would be able to "return to growth and profitability over time". But analysts now do not seem so safe, because the company should not deliver a Full year of profitability During fiscal 2024 or exercise 2025, according to Seekingalpha.

"We believe that the financial situation of Big Lots is becoming more and more precarious and noted recent media reports that the company hired a recovery consulting company and currently explores financing options to be very worrying," concluded Chukumba .

For the moment, the big prizes do not seem to disappear completely. Ohio -based company Currently exploits More than 1,400 Big Lots stores in 47 states, according to its website. Nevertheless, the alarm ringtones sound on its future, which makes investors (and buyers) kept the situation closely.