Big Lots Delays Release Of Q2 Results
Big Lots is delaying the release of its second quarter results, originally scheduled for September 6 to Thursday, September 12.
While the one paragraph press release issued on September 6 did not specify a reason for the delay, the decision further raised concerns over the retailer’s future. In recent weeks, the company has announced it would close 300 stores and its distribution center in Columbus, Ohio, which will go black by Halloween.
In April, Big Lots increased its borrowing capacity by up to $200 million with a new loan from the 1903P Loan Agent, LLC, an affiliate of Gordon Brothers Capital.
According to officials with the retailer, the “first in, last out” (FILO) loan will “significantly” enhance the company’s liquidity position and is incremental to the borrowing capacity within Big Lot’s current $900 million asset-based revolving loan facility (ABL).
Despite this added funding, rumors of a possible bankruptcy filing have swirled. A report from NBC4 Ohio, citing a recent company SEC filing, said the retailer has substantial doubt about the company’s ability to continue,” which spurred talk of a bankruptcy filing.
Ironically, Big Lots financial troubles and news of store closures have driven traffic to stores selected for closure. Traffic at those stores was up 19.1% month-over-month in July, while chain-wide the retailer saw store traffic growth of less than 2%.
“Customers, it seems, are flocking to the stores on the chopping block to snag high-ticket items at even steeper discounts,” the Placer.ai report said.
