Debt-ridden and bankrupt, Big Lots is permanently closing its Apple Valley distribution center, laying off all 349 employees at the facility by Oct. 31.
In a letter to Mayor Scott Nassif and the state’s Employment Development Department, the company stated all associates who are “involuntarily terminated as a result of the closure” will get pay and benefits through Nov. 3.
Also see: Big Lots closing 75 stores in California. See the list
Staff at the distribution center at 18880 Navajo Road include 192 material handlers, 38 power equipment handlers, and various administration and supervisor roles.
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The discount retailer filed for bankruptcy in early September with plans to sell its assets to the stalking horse bidder Nexus Capital Management LP. If no better bids were to land, Nexus will be the retailer’s next owner.
In August, Big Lots disclosed in regulatory filings that it would close at least 75 stores in California. Nationwide, the company is closing at least 315 stores.
The Ohio-based discounter said the U.S. economy and inflation were curbing customer spending. Big Lots reported first quarter sales were down nearly 10%. The company in its earnings call reported a net loss of $205 million for the period.
The company counts about 9,600 full-time employees and about 18,100 part-time employees. It has roughly $556 million in long-term debt, according to court documents.
Big Lots is not the only discount brand facing significant economic headwinds.
Earlier this year, all 99 Cents Only stores closed. Many of those vacant sites in California are converting to Dollar General after parent company Dollar Tree bought the leases in a bankruptcy sale.
Bloomberg contributed to this report.
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