Big Lots announces Halloween sale up to 70% off amid bankruptcy concerns

Photo byBig Lots

CALIFORNIA – Big Lots announced, August 22, that hundreds of new Halloween items will be sold for 50-70% less than their original retail prices.

The deal covers indoor and outdoor décor; costumes; pumpkin carving kits, tableware, trick-or-treat essentials and apparel.

"This new closeout deal significantly increases our total offering for Halloween, making this our biggest Halloween ever,” said Big Lots President and CEO Bruce Thorn.

Big Lots says Halloween items from this closeout deal will be available in-store only for a limited time, with assortment varying by store.

Bankruptcy concerns

The news comes amid concerns of bankruptcy for the discount retailer.

In a summer Securities and Exchange Commission (SEC) SEC filing, Big Lots indicated that it may struggle to meet financial obligations due to low cash flow and liquidity issues.

“...the Company has concluded there is a significant likelihood that it will be unable to comply with the Excess Availability Covenant under the 2022 Credit Agreement and the Term Loan Facility within the next 12 months, which raises substantial doubt about the Company’s ability to continue as a going concern,” reads a statement in the filing.

In addition, Big Lots confirmed permanent closures of 315 stores across 35 states.

California will have the most closures. Permanent shutterings have increased to 75 locations in the state.

Halloween comeback

Despite growing bankruptcy concerns, Big Lots may be counting on Halloween deals to fuel their comeback.

The company found that one in five shoppers plan to spend more than $100 on Halloween this year with 33% planning to spend between $50 - $100.

Their top merchandise categories are candy (88%), decorations (85%), pumpkins (56%), costumes (36%), and party supplies (30%).

RELATED: List of 54 Big Lots stores permanently closing in California with 20% off sale