Columbus-based discount retail chain Big Lots is working to get out of big financial trouble.

In its recent first quarter financials, the Columbus, Ohio-based discount chain announced that there is “substantial doubt” regarding it’s ability to continue as a going concern due to factors including current economic and credit conditions, inflation, the cost of goods, the company’s inability to successfully execute strategic initiatives, competitive pressures, economic pressures on our customers.

In reporting a net loss of $205 million for the first quarter of fiscal 2024, Big Lots also stated that it began the year with 1,392 stores and expects to open three stores this year and close between 35 and 40.

"We missed our sales goals due largely to a continued pullback in consumer spending by our core customers, particularly in high ticket discretionary items,” said Big Lots President and CEO Bruce Thorn.

Executives say they have implemented plans to reduce costs, improve sales, and enhance the chain’s financial flexibility and liquidity.

However, based on current cash and liquidity projections, and uncertainty over whether those plans will help the company, Big Lots concludes that there is a “significant likelihood” that it won’t be able to comply with the terms of a credit agreement.