Columbus, Ohio – Big Lots has inked a new multi-million-dollar loan facility, which it says significantly enhances its liquidity position and improves its borrowing capacity.
The new FILO term loan facility, made through an affiliate of Gordon Brothers Capital, boosts Big Lots’ borrowing capacity by up to $200 million. The arrangement significantly bolsters the company’s liquidity position and is incremental to the borrowing capacity within its current $900 million asset-based revolving loan facility, the retailer said.
“The financing announced [April 18th] gives us additional flexibility as we continue our focus on delivering extreme bargains and unmistakable value to our customers,” said Jonathan Ramsden, chief financial and administrative officer of Big Lots.
What to know
- Last year, bargain penetration surpassed 60% of Big Lots’ product assortment. That included “extreme bargains,” primarily close-out merchandise buys.
- This year, Big Lots expects that 75% of its merchandise mix will consist of “bargains” (good value items) along with an expanded assortment of closeout “extreme bargains.” The remaining merchandise will comprise essential staple items.
- As part of that strategy, Big Lots is working to create an annual pipeline of closeout deals worth more than $1 billion at original retail value across furniture, décor and pantry essentials.
“We will also continue to offer high value products with higher price points that we believe will attract customers from higher income households such as our Broyhill branded home products,” the company stated in the Big Lots 10K annual report it filed with the SEC yesterday evening.
Working toward a turnaround
- Big Lots remains on track to realize at least $200 million in profitability improvements identified through its Project Springboard initiative, which it launched in spring 2023, it said.
- The company has not yet issued full-year guidance for 2024, but does expect its Q1 adjusted operating loss to be lower than last year.
- It also anticipates quarterly year-over-year gross margin improvement as it works toward returning to positive comp sales over the course of this year.
The company is expected to report its Q1 results in early May.
See also:
- Less depth, more breadth. Big Lots sharpens its merchandising priorities
- Why a shift in Asian sourcing strategy is a big deal for Big Lots