Posted on 09/07/2024 4:19:13 AM PDT by george76
Discount home goods retailer Big Lots is preparing to file for bankruptcy as early as this Sunday and plans to sell its chain of stores through a court-supervised process..
The company will remain in operation under Chapter 11 protection, the report said, and is currently in the process of securing a stalking horse bid, which means that the bid could be outdone if better offers emerge.
Earlier in the day, the retailer announced the postponement of its second-quarter earnings release, which had been scheduled for Friday. The company now expects to report results on Sept. 12.
...
Big Lots, a retailer operating around 1,400 stores and employing over 30,000 workers, has been grappling with declining sales over the past few quarters, putting pressure on its balance sheet.
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Its stock has plunged more than 90% in the past year and dropped more than 22% in extended trading on Friday.
(Excerpt) Read more at nypost.com ...
“Its stock has plunged more than 90% in the past year and dropped more than 22% in extended trading on Friday.”
Buy! Buy! Buy!
I used to be a big fan of them but over the years they have gotten away from their roots.
Instead of overstocks, they now just sell cheap knockoff crap and it shows in their bottom line.
I would not recommend to buy at all.
Take yer pick:
A. Don’t try to catch a falling knife.
B. Buy when everyone else is selling.
I consulted my Magic 8-Ball on this. It said, “Ask again later.” That was no help at all.
Build Back Better. Don’t recall all these businesses having bankruptcies and going under when Trump was president.
Build Back Better.
This is the Destruction Phase. That’s what Joe was brought in for.
30,000 workers pink-slipped would tick up the unemployment data. 1400 stores closing would add strain to the already struggling commercial real estate market. Bidenomics at its finest.
Big Lots stock closed up 9% Friday at $0.4968/share. In after hours trading, BIG fell 40% to $0.2989.
I’ve never gone shopping there. Not even once.
We don’t get there often, but, in wandering the store, we find things we couldn’t fine elsewhere.
It is an interesting place to visit.
Me, either. In fact, i don’t think I’ve ever seen one of their stores.
My wife and daughter go there once in a while. I haven’t been there enough to remember what they have.
I used to buy delicious Canadian fudge cookies at my local Big Lots. Then I went on a diet and quit going completely.
I used to buy delicious Canadian fudge cookies at my local Big Lots. Then I went on a diet and quit going completely.
So it’s YOUR FAULT! ;)
When they were a surplus and close-out inventory seller at barely over their cost, they were a real bargain, hit or miss for anything you might want with their random inventory.
Then they got too big for their britches thinking they could convert to a stable inventory chain like Target or Walmart. Prices went through the roof and customers not through the doors anymore.
Ollies is the one.
Interesting how the Biden/Harris economy is destroying private enterprise. Not much said about it in the MSM. However, let Trump cut back on the size of government and the MSM will scream bloody murder.
Investment companies like Blackrock, Vanguard, etc. bring almost unlimited funds to companies like Amazon. Amazon then builds more huge distribution centers/warehouses making it very difficult for retailers to compete.
There won’t be any jobs left if we continue in this direction.
I don’t know enough about Big Lots situation but, overall, Amazon and other big tech companies almost have a blank check to crush any competition.
Most likely the plan of reorganization will call for the wipeout of current equity holders. I started investing at the beginning of COVID. One example was Party City, the price of which had collapsed, I think to about $.45. Made a bundle when it came back, average of 1400% return. When they were about to declare bankruptcy I got back in and hopped out. It was just a toe in the water the second time around and still made over 1000% overall
Instead, Big Lots tried to compete with the very companies they had been purchasing overstock items from.
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