Part 7/9:
The final factor in Big Lots' demise lies in its flawed investment strategies, particularly stock buybacks. In 2020 and 2021, the company heavily invested in repurchasing its shares, believing that the stock was undervalued. Unbeknownst to them, this decision would later backfire, costing them nearly $600 million as stock prices plummeted to below a dollar. Such capital could have been better utilized to alleviate the financial strains that led to bankruptcy proceedings.