(KRON) -- Grocery Outlet, the Bay Area-based discount grocery store chain, is set to close dozens of underperforming stores. On Wednesday, the company, which is headquartered in Emeryville, put out a news release on recent financial results. Despite an increase in net sales, the press release indic ated that company posted an operating loss of $234.8 million and a net loss of $218.2 million in the fourth quarter of fiscal year 2025. The company's president and CEO, Jason Potter, said that in the wake of its disappointing fourth-quarter results, the chain would be closing underperforming stores. Trader Joe’s announces recall for frozen Asian foods According to Potter, Grocery Outlet will move forward with "closing underperforming stores, reshaping our new store growth strategy and reallocating resources to strengthen operating results and returns on capital." FILE - A Grocery Outlet had its grand opening in Marin City on March 7, 2024. (Photo: KRON4) Following a strategic, financial and operational analysis of the chain's current store fleet in the first quarter of fiscal 2026, Grocery Outlet's board of directors adopted an optimization plan that calls for the closure of three dozen stores. Which stores will Grocery Outlet close? While no announcement has been made as to which stores will close, Grocery Outlet said the optimization plan is expected to be completed sometime during the 2026 fiscal year. Grocery Outlet currently operates 536 stores across the United States including around 17 in the Bay Area. According to a report in the grocery industry trade publication, Grocery Drive, 24 of the stores set to close are on the East Coast. While more than half of Grocery Outlet stores are in California, the company also operates stores in Washington, Oregon, Idaho, Nevada, Maryland, Pennsylvania, New Jersey, Ohio and Delaware. ...read more read less