Big Lots laying off all 349 employees at Apple Valley distribution center

Last Updated on September 20, 2024 by The HD Post Staff

APPLE VALLEY – Big Lots is permanently closing its Apple Valley distribution center, effective October 31, and laying off all 349 employees.

According to the Worker Adjustment and Retraining Notification (WARN) Report, the notice went out on September 4.

The layoffs come amid closure of at least 74 store locations in California and 315 stores nationwide.

In 2019 the Apple Valley distribution center replaced the Big Lots facility in Rancho Cucamonga as one of the five in the US. Big Lots invested $120 million dollars into the Apple Valley facility which included streets and infrastructure improvements.

The discount retailer announced in early September that they are filing Chapter 11 bankruptcy in an effort to reorganize its debts and continue operating. They have plans to sell its assets to Nexus Capital Management LP.

High inflation and interest rates

Big Lots says like many other retail businesses, they have been adversely affected by recent broad economic factors such as high inflation and interest rates.

“The prevailing economic trends have been particularly challenging to Big Lots, as its core customers curbed their discretionary spending on the home and seasonal product categories that represent a significant portion of the Company’s revenue,” reads a statement in the news release.

Going forward, the discount retailer will continue to assess its operational footprint, which will include closing additional store locations.

WARN Act

The WARN Act requires employers to provide written notice of certain plant closings and mass layoffs to employees and their families.

The US Department of Labors says WARN protects workers, their families, and communities by giving them time to adjust to the loss of employment, seek other jobs, and enter skill training or retraining.