Big Lots will close up to 40 stores as it mulls bankruptcy. There are 27 NJ locations
Discount retailer Big Lots will close between 35 and 40 stores this year as it mulls a bankruptcy, citing “elevated inflation” and decreases in consumer spending.
It marks the latest chain with a major presence in New Jersey to face substantial financial challenges since the COVID-19 pandemic began.
Other companies that have filed for bankruptcy since the pandemic include Red Lobster, Rite Aid, Bed Bath & Beyond and Christmas Tree Shops. Pharmacy chain Walgreens said it would close hundreds of “underperforming” stores.”
“In 2024, the U.S. economy has continued to face macroeconomic challenges including elevated inflation, which has adversely impacted the buying power of our customers,” a financial disclosure from Big Lots states.
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Big Lots had planned to open three stores in the past year, but now plans to close between 35 and 40 across the nation. There are 27 Big Lots stores in New Jersey.
A spokesperson for Big Lots did not immediately respond to an email seeking comment and information on which stores may be closing. The potential bankruptcy was first reported by the New York Post.
Surge in bankruptcies
June saw the highest level of bankruptcies since the COVID-19 pandemic in early 2020, according to a report by the Wall Street firm S&P Global.
This year’s bankruptcies have totaled 346 — “higher than any comparable figure in the prior 13 years,” S&P said.
“High interest rates, supply chain issues and slowing consumer spending continue to weigh on struggling companies,” the note states.
From March 2022 to July 2023, the Fed hiked its key interest rate from near zero to a range of 5.25% to 5% — a 23-year high — in an effort to tame a pandemic-induced inflation spike.
Recent reports underscore that inflation eased notably in May, with a key measure the Fed follows closely at 2.6%. That’s above the Fed’s 2% goal but the lowest since March 2021 and down from a peak of 5.6% in mid-2022.
But Jerome Powell, who chairs the Federal Reserve, has maintained a cautious stance about lowering rates since inflation unexpectedly picked up in the first quarter following a significant slowdown last year.
In New Jersey, the COVID-19 pandemic fueled surges in shopping and retail spending in 2021 and 2022, though that activity has leveled off, according to data from the U.S Census Bureau.
Where are Big Lots in New Jersey?
There are 27 Big Lots stores across New Jersey:
Daniel Munoz covers business, consumer affairs, labor and the economy for NorthJersey.com and The Record.
Email: munozd@northjersey.com; Twitter:@danielmunoz100 and Facebook
This article originally appeared on NorthJersey.com: Big Lots will close up to 40 stores as it mulls bankruptcy
