Big Lots 2010 Annual Report Download - page 85

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If we lose key personnel, it may have a material adverse impact on our future results of operations.
We believe that we benefit substantially from the leadership and experience of our senior executives. The loss of
services of any of these individuals could have a material adverse impact on our business. Competition for key
personnel in the retail industry is intense and our future success will also depend on our ability to recruit, train,
and retain our senior executives and other qualified personnel.
The price of our common shares as traded on the New York Stock Exchange may be volatile.
Our stock price may fluctuate substantially as a result of factors beyond our control, including but not limited
to, general economic and stock market conditions, risks relating to our business and industry as discussed
above, strategic actions by us or our competitors, variations in our quarterly operating performance, our future
sales or purchases of our common shares, and investor perceptions of the investment opportunity associated
with our common shares relative to other investment alternatives.
The bankruptcy of our formerly owned KB Toys business may adversely affect our business and financial
performance.
In December 2000, we sold the KB Toys business to KB Acquisition Corporation. On January 14, 2004,
KB Acquisition Corporation and certain affiliated entities (collectively “KB-I”) filed for bankruptcy protection
pursuant to Chapter 11 of title 11 of the United States Code. On August 30, 2005, in connection with the
acquisition by an affiliate of Prentice Capital Management of majority ownership of KB-I, KB-I emerged from
their January 14, 2004 bankruptcy (the KB Toys business that emerged from bankruptcy is hereinafter referred
to as “KB-II”). On December 11, 2008, KB-II filed for bankruptcy protection pursuant to Chapter 11 of title
11 of the United States Code. Based on information we have received subsequent to the December 11, 2008
bankruptcy filing, we believe we may have indemnification and guarantee obligations (“KB-II Bankruptcy
Lease Obligations”) with respect to 29 KB Toys store leases and a lease for a former KB corporate office.
Because of uncertainty inherent in the assumptions used to estimate this liability, our estimated liability could
ultimately prove to be understated and could result in a material adverse impact on our financial condition,
results of operations, and liquidity. For additional information regarding the KB Toys bankruptcies, see note 11
to the accompanying consolidated financial statements.
We also may be subject to a number of other factors which may, individually or in the aggregate, materially
or adversely affect our business. These factors include, but are not limited to:
• Changes in governmental laws and regulations;
• Events or circumstances could occur which could create bad publicity for us or for types of
merchandise offered in our stores which may negatively impact our business results including sales;
• Infringement of our intellectual property, including the Big Lots trademarks, could dilute our value;
• Our ability to attract and retain suitable employees;
• Our ability to establish effective advertising, marketing, and promotional programs; and
• Other risks described from time to time in our filings with the SEC.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.