COLUMBUS, Ohio (WCMH) -- Big Lots, the Columbus-based discount retail chain that recently closed more than 300 stores, is fighting off a potential bankruptcy by offering big discounts on Halloween costumes and decorations.
The chain announced late last month it bought its "biggest extreme bargain Halloween closeout ever" from a "well-known national party supply retailer's overstock" that was originally valued at $11 million. The deal includes hundreds of new Halloween items -- indoor and outdoor décor; costumes for adults, children and pets; pumpkin carving kits; trick-or-treat essentials; apparel and more -- that will be sold for 50 to 70% less than their original prices.
Big Lots said the deal will position the chain as "the nation's largest discount Halloween retailer heading into the fall." Halloween items from this closeout deal will be available in-store only for a limited time, with assortment varying by store.
"Our ongoing efforts to find high-demand products at unbeatable prices are accelerating, with new closeout deals and truckloads of bargains arriving at stores every week," said Bruce Thorn, CEO at Big Lots, in a release. "This new closeout deal significantly increases our total offering for Halloween, making this our biggest Halloween ever."
The Halloween deals are coming shortly after the chain announced it is shuttering several Ohio stores, among more than 300 locations that are closing amid speculation the company will file for bankruptcy.
While Big Lots initially shared plans in June to shutter 35 to 40 stores by the end of 2024, the number of closures ballooned in July as 149 locations posted banners on their websites that read "closing this location." Since then, the chain has submitted an updated filing with the Securities and Exchange Commission that states the company expects to close up to 315 stores.
Big Lots' sales dropped 10.2% between the first quarters of 2023 and 2024, equating to a loss of about $114 million. The retailer, whose headquarters are in the 4900 block of East Dublin Granville Road, wrote in a SEC filing that, "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."
Big Lots fell an additional $72.2 million into debt between the first quarters of 2023 and 2024, bringing the company's total debt to $573.8 million. The chain said in a SEC filing that it now has "substantial doubt about the company's ability to continue," leading to speculation of a potential bankruptcy filing.
If Big Lots does end up filing for bankruptcy, it will join a sea of other stores and restaurants that have also done so since the COVID-19 pandemic. Red Lobster is closing a chunk of Ohio locations after filing for bankruptcy in May, citing $1 billion in debt. Bed, Bath & Beyond filed for bankruptcy last year, shuttering a number of central Ohio stores.
Orlando-based Buca di Beppo filed for Chapter 11 on Sunday as the company said it owes at least $15 million to $50 million to at least 30 creditors, court documents show. Plans were finalized earlier this year to bulldoze the chain's Worthington restaurant at 60 E. Wilson Bridge after the site was purchased by Chick-fil-A in April.
Big Lots' Ohio stores include a Delaware location that was transformed last year into "Big Lots Home," a new brand of stores dedicated to furniture and décor. The location was one of 10 Big Lots that underwent the rebranding, including stores in Louisville and Georgetown, Kentucky.
