Discount Retailer Ponders Bankruptcy Filing

Even though the cost of living is up, people still need to buy groceries and household items. One would think that discount retailers could benefit from a tough economy, with shoppers on the hunt for bargains to help account for inflation. But this isn’t exactly how things are turning out, with the biggest retailers, like Amazon and Walmart, only seeming to take over an even-larger share of the market. Smaller discount retailers can struggle to keep up when these types of behemoths already have a hold on customers. The latest chain to contemplate filing for bankruptcy due to challenges stemming from macro-inflation is Big Lots. Big Lots was founded in 1967 in Columbus, Ohio. It had 1,392 locations across the United States as of April 2024. But as its profits have declined, the retail giant is now reportedly considering bankruptcy. It has also announced that it will close between 35 and 40 store locations across the country, which means that hundreds of jobs are at risk.

This isn’t the only recent example of a major discount retailer needing bankruptcy protections. 99 Cents Only, a discount chain and competitor of Dollar Tree, announced that it would be closing its 371 locations and filing for bankruptcy in April 2024. The store, like many other businesses, was still struggling to recover from the financial repercussions of the COVID-19 pandemic. Consumer demand was waning for the bargain retailer, and it was also suffering losses from causes like shoplifting, internal loss, etc. At the time of its bankruptcy filing, 99 Cents Only had 14,000 employees in Arizona, California, Nevada, and Texas. Many of 99 Cents Only’s stores have been or are currently being converted into Dollar Tree store locations.

While perhaps not as well known for being a discount retailer, another chain similar to Big Lots that filed for bankruptcy recently is Bed Bath & Beyond. Bed Bath & Beyond had been in business for 52 years, with 360 locations across the country, when it filed for bankruptcy in April 2023. It also resulted in the closure of 120 nationwide Buy Buy Baby stores. One decision that caused customers to turn away from Bed Bath & Beyond was to replace name-brand goods with its own “private label” store brand. This caused a sharp 33% decline in sales in November 2022, or the holidays, and when stores should be selling more than ever.

Corporate bankruptcy filings are up, and Big Lots is just the latest retailer to fall victim to rising costs from inflation. Unfortunately, when corporations declare bankruptcy, ordinary people lose their jobs. If you have recently experienced a job loss or are simply struggling to keep up as expenses rise and salaries remain stagnant, you may benefit from filing for bankruptcy too. Learn more about the process in Arizona and receive an affordable quote for legal services with payment plan options starting as low as Zero Dollars Down. Get started today with your free consultation by calling 480-405-1010.

Arizona Big Lots Locations

As Big Lots has announced its intentions to close 40 of its locations, this means that locations- and jobs- in Arizona could be affected. There are 34 Big Lots locations in Arizona, and they are located in the following cities:

Apache Junction
Bullhead City
Casa Grande
Flagstaff
Gilbert
Glendale (2 store locations)
Goodyear
Green Valley
Kingman
Lake Havasu City
Laveen
Mesa (3 store locations)
Payson
Peoria
Phoenix (6 store locations)
Prescott
Scottsdale
Show Low
Sierra Vista
Surprise
Tempe
Tucson (4 store locations)
Yuma

Tips For Bankruptcy After Job Loss

Some of the leading causes of bankruptcy in the United States include medical emergencies, divorce, and job loss. With a reported 78% of American families living paycheck-to-paycheck, it’s easy to see how someone could quickly amass debts after losing their job. Many people in this position might pay for bills and groceries with credit cards in the meantime with every intention of paying them off after finding new employment. If you are struggling to fend off creditors due to a job loss, bankruptcy might be able to help your situation. Read on to learn our tips for filing for bankruptcy after job loss, and for more information, contact our firm for your free consultation at 480-405-1010.

Take Advantage Of Decreased Monthly Income For Qualification Purposes

One way to qualify for chapter 7 bankruptcy is by having an average monthly income that is lower than the median monthly income for your household size in your state. The average is taken from the last 6 months. So, if you recently lost your job, your average monthly income is likely about to decrease. If your income while employed was too high to qualify for chapter 7, you may have an opportunity if you wait long enough for the reduction in your average monthly income.

Avoid Discretionary Credit Card Purchases

There are limits on how much a bankruptcy debtor can spend on luxury purchases and cash advances on credit cards before filing. If you are relying on credit cards to make ends meet during a period of unemployment, avoid non-necessary purchases that could be excluded from your bankruptcy discharge. Here, your creditors could pursue you for debts all over again once your case is discharged and all of your debts besides non-protected credit card purchases are cleared.

If You Foresee Bankruptcy, Start Planning Now

There could come a time when you need to file for bankruptcy as soon as possible, and rushed filings can come with errors that cause disruptions in your case. If you know that bankruptcy due to a job loss is inevitable but you aren’t quite ready to file, there are a few steps you can take to make the process simpler when that time does come. One thing to keep in mind is that you can take your first credit counseling course up to 180 days, or 6 months, before filing. Taking it in advance could come in handy if you were ever facing an emergency collection action by a creditor. You should also be sure to begin gathering documents that, if missing, will take time to request from the appropriate government agencies. Common examples include requesting new copies of your driver’s license and/or social security card, and getting copies of your tax returns. If you have the free time, collecting these documents early can save you hassle down the road in your bankruptcy case. If you have questions about which documents you will need, contact our firm for your free consultation on our site or at 480-405-1010.

Skilled Bankruptcy Representation For Debt Relief In a Tough Economy

It’s telling of the current state of the economy that even a major discount retailer with hundreds of nationwide locations has to consider declaring bankruptcy. Bankruptcy provides relief from debt and protections from creditor that can help businesses and Arizona families alike. Retaining experienced bankruptcy representation is the best way to ensure your petition is filed with accuracy so your case is as fast and effective as possible. Want to learn more about how bankruptcy would apply to your unique situation? Schedule your free consultation with our experienced Arizona Bankruptcy attorney today by calling 480-405-1010. Don’t hesitate to contact us today!