A national retailer with a location in Falls Township is facing significant financial challenges, according to recent reports and Securities and Exchange Commission filings.
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Ohio-based Big Lots reported losses in 2022, 2023, and the first quarter of 2024.
Last month, Big Lots warned in a filing that while it is currently managing its debt, future losses may hinder its ability to keep up with payments. Company officials stated there is a “significant likelihood” that they may not be able to comply with a 2022 credit and loan agreement.
Big Lots operates nearly 1,400 stores across the country, with more than 70 locations in Pennsylvania, including the store off Lincoln Highway in Falls Township’s Fairless Hills section. The Levittown-area store has been open for more than a decade.
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To address its financial difficulties, the company is working to trim costs and close poorly performing stores.
According to the New York Post, Big Lots plans to close about 40 stores this year, following the closure of 50 stores last year.
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The report also indicated that Chapter 11 bankruptcy is a possibility for the retailer.
Despite the financial strain, Big Lots awarded its management $6.3 million in “cash awards,” as revealed in a federal filing.
In the first quarter, the company reported a 10.2 percent decrease in net sales and an increase in long-term debt over the past year.
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The brick-and-mortar chain said that “customers remain cautious with discretionary spending,” which has led to decreased sales.
Many large, chain retailers have struggled over the past 15 years as shopping trends have changed and e-commerce continues to be a major player.
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