Big Lots Begins Liquidation After Failed Sale Attempt

Big Lots, Inc., a discount retail chain from Columbus, Ohio, has started going-out-of-business sales at all stores. This move comes after they failed to sell to Nexus Capital Management. They filed for Chapter 11 bankruptcy in early September.

Customers can still shop in Big Lots stores and online during the liquidation. The chain has nearly 1,400 stores across 48 states. They will update on store closures as they happen.

Key Takeaways

• Big Lots, a Columbus-based discount retailer, has filed for Chapter 11 bankruptcy and is beginning liquidation sales nationwide.
• The company was unable to finalize a sale to Nexus Capital Management, leading to the bankruptcy filing and store closures.
• Big Lots operates nearly 1,400 stores across 48 states, but the exact number of remaining locations is not immediately available.
• Customers can still shop at Big Lots stores and online during the liquidation process, with discounts of up to 50% on the entire product assortment.
• The company’s financial struggles were exacerbated by high inflation, rising interest rates, and intensifying competition from Walmart and warehouse clubs.

Big Lots’ Journey from Retail Giant to Bankruptcy Filing

Big Lots was once a big name in home goods and furniture. It started in Columbus, Ohio, in 1967. The company grew to nearly 1,400 stores across 48 states at its peak.

Company’s Columbus Origins and National Expansion

Big Lots began in Columbus and grew across the country. It offered furniture, home decor, and more at low prices. This appealed to shoppers looking for deals.

Recent Financial Struggles and Chapter 11 Filing

But, Big Lots has faced tough times lately. It saw 16 quarters of falling sales before filing for bankruptcy in September 2024. The company filed for Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.

Impact on 27,000+ Employees Nationwide

The closure of Big Lots’ 963 stores will affect over 27,000 employees. As the stores close, many jobs will be lost. This includes corporate roles that will be cut by January 2025.

The fall of Big Lots is a warning to the retail industry. The company’s liquidation will hurt its employees and the retail world. This situation is a big concern.

Big Lots Launches Going-Out-of-Business Sales Following Failed Company Sale

Big Lots has announced going-out-of-business sales in all 870 stores after failing to sell to Nexus Capital Management. The sale didn’t work out because the company’s inventory was valued lower than expected. This made the deal with Nexus no longer possible.

Big Lots’ CEO, Bruce Thorn, said the company tried hard to sell as a going concern. But now, it must liquidate to protect its assets. Customers will get up to 50% off in these sales as Big Lots closes its stores across the country.

The company has faced tough times, with sales dropping for years. It had 1,300 stores in 48 states and 27,700 employees before filing for bankruptcy. Big Lots has since closed over 300 stores and laid off 555 corporate employees in Columbus, Ohio.

During bankruptcy, Big Lots got $707.5 million in commitments, including $35 million in new financing. The sale to Nexus for $2.5 million in cash was part of this. But Nexus decided not to go through with it because of Big Lots’ financial issues.

The going-out-of-business sales signal the end for Big Lots as a retail giant. The company will close most of its 870 stores across the country. The closure of the Apple Valley Distribution Center alone will affect 349 employees.

Nationwide Store Closure Details and Timeline

Big Lots is facing tough times and has started closing stores across the U.S. Over 400 stores have closed in 2024. The remaining 963 stores will also close as Big Lots sells off its assets.

Current Status of 870 Remaining Locations

In New York, there are 50 Big Lots stores. New Jersey has 18, and Connecticut has 6. The company planned to sell to Nexus Capital Management. This hedge fund has helped other struggling businesses before.

Online and In-Store Shopping During Liquidation

Big Lots will still offer online and in-store shopping during the liquidation. Customers can find big discounts, up to 50% off. But, landlords and creditors worry about getting paid because Big Lots has little cash.

Regional Impact Across Major Markets

The closures will affect many areas where Big Lots was a big name. The bankruptcy will leave a big gap in retail. It will also hurt local economies and landlords with empty stores.

Failed Nexus Capital Management Deal and Future Prospects

The sale of Big Lots to Nexus Capital Management LP didn’t happen, even after the bankruptcy court approved it last month. We tried hard, but it didn’t work out. Now, we’re looking for another way to stay in business.

We have to act fast because the judge sees our situation as urgent. He wants a deal by the end of January. This is a tight deadline for us.

Our problems show the tough times many retailers face. Companies like Party City Holdco Inc. and Container Store Group Inc. are also struggling. The Chapter 11 filing and bankruptcy court process have been tough. But we’re determined to find a way to keep going and serve our customers.

We’re looking at every possible option to keep our brand alive and our business running. We’re counting on our loyal customers to help us get through this. We’re hopeful that together, we can overcome these challenges and stay strong in the retail industry.

FAQ

What is happening with Big Lots?

Big Lots, Inc. has started going-out-of-business sales at all stores across the country. This comes after they failed to sell to Nexus Capital Management. The company filed for bankruptcy in September.

When was Big Lots founded?

Big Lots was started in Columbus, Ohio in 1967. It grew into a big chain selling furniture, home decor, and more.

How many people are employed by Big Lots?

Big Lots has over 27,000 employees. They are all affected by the company’s decision to close.

How many stores does Big Lots have currently?

Big Lots has closed hundreds of stores. Now, they have about 870 locations left.

What happened with the sale to Nexus Capital Management?

The sale to Nexus Capital Management LP didn’t happen. It was approved by the bankruptcy court last month. Big Lots is looking for another deal to stay open. They hope to find one by the end of January.

Where will the store closures impact?

The closures will affect many places. This includes Kentucky, Indiana, and Ohio.