107 Vacant Stores: Big Lots' Bankruptcy and the Florida Retail Landscape?

Big Lots has 1,392 locations, with 106 in my state of Florida. The stores typically range in size from 20-25 thousand square feet. With the news of nearly certain bankruptcy filing, it seems some if not all will be available for new tenants. 

In a recent filing with the SEC, Big Lots declared that it is possible to fall out of compliance with a debt covenant, triggering a default and raising the question of whether Big Lots is a store with a future. Blackrock seems to be walking away by reducing its shareholdings from 7.9% to 1.8% of outstanding shares. 

Will Bankruptcy Open New Doors for Retailers?

Big Lots, with 1,392 locations nationwide, including 106 in Florida, typically operates stores ranging from 20,000 to 25,000 square feet. However, with looming bankruptcy, these spaces might soon be available to new tenants.

A recent SEC filing revealed that Big Lots might default on its debt covenants, casting doubt on its future viability. The situation is further complicated by BlackRock's decision to significantly reduce its stake in Big Lots, dropping from 7.9% to just 1.8%. This move signals a potential lack of confidence in the company’s ability to navigate its financial challenges.

The potential default and shareholder retreat raise serious questions about whether Big Lots can continue to operate or if its stores will soon find new occupants.