Big Lots to Close Remaining 963 Stores After Failed Sale
Big Lots to Close Remaining 963 Stores After Failed Sale
Big Lots, the discount retailer that has served American shoppers for decades, announced it will begin closing its remaining 963 locations after a last-ditch effort to sell the bankrupt company fell through.
In September, the company revealed plans to sell “substantially all” of its assets to private equity firm Nexus Capital Management in a bid to avoid collapse. However, in a statement issued Thursday, Big Lots confirmed that it “does not anticipate completing” the transaction.
As a result, the company is launching “going out of business” sales across all remaining stores in the coming days. Despite this, Big Lots says it will continue to explore alternatives, including negotiations with Nexus or potential new buyers, in hopes of completing a sale by early January.
“We have worked tirelessly to secure a going concern sale,” CEO Bruce Thorn stated. “While we remain hopeful for an alternative solution, we must protect the value of the Big Lots estate by initiating the [going out of business] process.”
Struggles Amid Economic Pressures
Big Lots attributed its bankruptcy to a range of economic pressures, including persistent inflation and high interest rates that have altered consumer habits. While shoppers continue to seek value, the demand for budget-friendly options has not necessarily translated into sustained success for dollar stores or discount chains. Meanwhile, retail giants like Walmart and Amazon have thrived.
Once a staple of American retail, Big Lots has been shrinking its footprint for months, having already closed hundreds of stores this year. At its height, the chain operated more than 1,400 locations nationwide.
Financial Turmoil
Before filing for Chapter 11 bankruptcy protection, Big Lots raised alarms about its viability. The company previously disclosed “substantial doubt” about its ability to remain operational, citing a looming default on a 2022 loan that could derail efforts to stay afloat.
The closure of Big Lots marks a significant chapter in the challenges faced by mid-sized retailers, particularly as economic headwinds continue to reshape the retail landscape.
