Discount retailer Big Lots filed for Chapter 11 bankruptcy protection on Monday, attributing the decision to ongoing high inflation under the Biden-Harris administration, which has led to decreased consumer spending and numerous store closures.
Since 2022, Big Lots has faced consecutive quarterly losses and has had to close several stores.
Read: Louisiana Sen. John Kennedy Calls Biden-Harris Administration ‘Inflation Machines’
As of May 2024, the company operated approximately 1,300 locations, down from 1,425 in early 2023. The company has secured over $700 million in funding to support its operations during the bankruptcy process, and Nexus Capital Management is expected to acquire the retailer.
CEO Bruce Thorn stated that these actions will allow Big Lots to move forward with new ownership and gain financial stability. The company’s bankruptcy filing reflects a broader trend in the retail industry, with 21 retailers filing for Chapter 11 protection by mid-July 2024 – the highest rate since the start of the pandemic.
Read: Hakeem Jeffries Snaps Back At CNBC Host Pressing Him On Dems’ Role In Inflation
Big Lots pointed to macroeconomic factors like high inflation and interest rates as major challenges. Consumers have been spending less on discretionary items, particularly impacting the home and seasonal product categories that are central to Big Lots’ revenue.
Inflation has risen over 20% since President Biden took office, reaching a peak of 9% in June 2022. This has contributed to declining consumer confidence and cautious spending habits.
Read: Virginia Voter Vents About Inflation Under Biden-Harris Admin On CBS
The retail industry isn’t alone in feeling the economic pressure. The restaurant industry has also experienced difficulties, with Red Lobster filing for bankruptcy in May and Hooters closing multiple locations in June.
Please make a small donation to the Tampa Free Press to help sustain independent journalism. Your contribution enables us to continue delivering high-quality, local, and national news coverage.
Android Users: Download our free app to stay up-to-date on the latest news.
Connect with us: Follow the Tampa Free Press on Facebook and Twitter for breaking news and updates.
Sign up: Subscribe to our free newsletter for a curated selection of top stories delivered straight to your inbox.