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Big Lots Boosts Liquidity with $200 Million Loan Facility

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Beleaguered retailer Big Lots has increased its borrowing capacity by up to $200 million with a new “first in, last out” term loan facility, secured through an affiliate of Gordon Brothers Capital. The move “significantly enhances the company’s liquidity position and is incremental to the borrowing capacity within the company’s current $900 million asset-based revolving loan facility,” according to a Big Lots statement.

Big Lots had a difficult fiscal year 2023, which ended Feb. 3, 2024. Net sales declined 13.6%, falling from $5.5 billion for FY 2022 to $4.7 billion for FY 2023. The company’s net loss for the year more than doubled during the same period, rising from $210 million to $481 million. For Q4 2023, comparable sales declined 8.6% compared to the same period the previous fiscal year.

“We remain fully committed to improving our results and returning the company to health and prosperity,” said Jonathan Ramsden, Chief Financial and Administrative Officer of Big Lots in a statement. “The financing announced today gives us additional flexibility as we continue our focus on delivering extreme bargains and unmistakable value to our customers.”

Big Lots has identified five key actions designed to reclaim its bargain heritage, including focusing on becoming the premier partner for closeouts and liquidations; growing bargain offerings to 75% of sales; and creating an annual pipeline of closeout deals worth more than $1 billion at original retail value across the furniture, décor and pantry essentials categories.

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Additionally, Big Lots “continues to aggressively manage both capital and expenses and remains on track to realize at least $200 million in profitability improvements identified through its Project Springboard initiative,” according to a company statement.

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