A major discount retailer is planning to close additional stores and may file for bankruptcy, according to multiple reports.

Big Lots blamed inflation and cutbacks in consumer spending for accelerating closure plans for this year. Citing June SEC filings, the New York Post reported Big Lots will close between 35-40 stores this year, following 52 locations closed in 2023.

Financial documents from the Ohio-based company showed it plans to open 3 new stores in 2024 but locations haven’t been announced.

Ongoing financial issues raises “substantial doubt” about its ability to continue operations, Big Lots said in its filing, leaving the possibility of bankruptcy ahead.

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“There is a significant likelihood that (the company) will be unable to comply (with financial agreements)…which raises substantial doubt about the company’s ability to continue as a going concern,” Big Lots said in regards to its financial situation. It added, however the company had “implemented plans to reduce costs, improve sales and enhance its financial flexibility and liquidity.”

Net sales for the company decreased 10.2%, or $114.5 million, compared to the first quarter of last year. The downturn was seen across all categories, the company said, but especially furniture, seasonal and home and garden which “continue to be negatively impacted by macroeconomic pressures affecting our customers’ discretionary spending,” financial filing noted. Fewer customers are buying large-ticket items, it added, though it did note a bright spot among Broyhill-branded furniture which is back at normal levels of stock after a shortage in the first quarter of 2023.