Big Lots Announces Closure of All 963 Locations

Source: Newsday LLC / Newsday LLC

Big Lots, the Columbus-based discount retailer, is preparing to close its remaining 963 locations after efforts to secure a buyer fell through. The company announced Thursday, December 19th that it would start “going out of business” sales at all locations in the coming days.

This development follows the collapse of a deal to sell “substantially all” of its assets to Nexus Capital Management. Initially announced in September, the agreement was expected to provide a lifeline for the bankrupt Big Lots. However, the retailer stated it no longer anticipates completing the transaction, though it remains open to negotiating with Nexus or other potential buyers to finalize a sale by early January.

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Big Lots CEO Bruce Thorn: “We have worked tirelessly to complete a going-concern sale…While we are still hopeful for an alternative transaction, we must begin the GOB process to protect the value of the company’s estate.”

The decision comes as Big Lots, and many other companies, struggle with economic challenges, including inflation and high interest rates. Many are turning to major players like Walmart and Amazon, leading to financial struggles for discount chains.

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At its peak, Big Lots operated over 1,400 stores nationwide. The company filed for Chapter 11 bankruptcy in September, citing “substantial doubt” about its ability to continue operations.

Big Lots reported a net sales decline of more than 8% in the second quarter, totaling $1.05 billion, and a quarterly net loss of nearly $238.46 million.

The retailer, known for its home goods, furniture, and seasonal items, has been a staple of discount shopping for 57 years.