Big Lots (BIG) has disclosed a new risk, in the Debt & Financing category.
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Big Lots has reported net losses and significant cash use in its operating activities for 2022, 2023, and the first quarter of 2024. These financial challenges, coupled with concerning cash and liquidity projections, have led to substantial doubt about the company’s ability to meet the Excess Availability Covenant stipulated in the 2022 Credit Agreement and the Term Loan Facility. The company acknowledges a considerable risk of non-compliance within the next year, casting uncertainty over its ongoing viability. Importantly, Big Lots’ financial statements have not been adjusted for potential impacts should the company be unable to continue as a going concern.
Overall, Wall Street has a Moderate Sell consensus rating on BIG stock based on 2 Sells and 1 Hold.
To learn more about Big Lots’ risk factors, click here.
