Big Lots, a Columbus, Ohio-based company with 27,700 employees and over 1,300 stores in 48 states, has filed for Chapter 11 bankruptcy protection. The move comes as the discount store industry faces pressure from lower-income shoppers pinching pennies.
The company’s crisis began earlier this year when it faced financial difficulties. However, instead of closing underperforming stores, Big Lots decided to focus on its core business of offering extreme bargains. Unfortunately, these deals were not enough to save the company.
Big Lots had planned to close hundreds of unprofitable stores and sell the company to private equity firm Nexus Capital Management for $620 million. However, the deal fell through, and the company will now initiate going-out-of-business sales at all its locations within days.
Despite this, Big Lots remains hopeful that it can reach a last-minute deal with Nexus or another entity to avoid liquidation. The company aims to complete a sale by early January 2024. In a statement, CEO Bruce Thorn said that the decision to begin liquidation is “difficult” but necessary to protect the value of the Big Lots estate.
Big Lots’ future remains uncertain as it navigates this challenging period.
Source: https://www.axios.com/2024/12/20/big-lots-stores-closing-list-liquidation-bankruptcy