Big Lots has announced it will close all of its remaining 963 stores just three months after filing for bankruptcy. The decision comes after a deal with private equity firm Nexus Capital Management LP, which was set to purchase the retailer and assist with restructuring, fell through. As a result, liquidation sales have now begun at all Big Lots locations.
Bruce Thorn, president and CEO of Big Lots, confirmed the news in a statement, adding that the company is still in discussions to complete a transaction with another lender. If successful, this could potentially reverse the liquidation process. However, Thorn emphasized that, for now, beginning the going-out-of-business sales was the best option to protect the value of Big Lots.
The company had originally planned to close about 545 stores by early 2025 as part of a strategy to “optimize” its store footprint. Of these, 295 stores have already begun the shutdown process, with an additional 250 slated to close before January 15, 2025. So far, 426 Big Lots locations have closed in 2024.
Prior to its bankruptcy filing in September, Big Lots had 1,389 stores across 48 states. Customers will still be able to shop at the stores and online while liquidation sales continue.
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However, employees are facing job cuts. Thorn mentioned that a “reduction in force” would be necessary, with corporate positions expected to be eliminated as early as January 2025. Many workers will also receive a Worker Adjustment and Retraining Notification (WARN) notice, which legally requires employers to inform employees about potential layoffs 60 days in advance.
Big Lots’ bankruptcy was driven by a substantial debt burden, with approximately $3.1 billion owed to creditors. The company also reported a net sales decline of about $114.5 million from the first fiscal quarter of 2023 to 2024. Macroeconomic pressures, including inflation, high interest rates, and changing consumer habits, contributed to the retailer’s struggles.
Big Lots’ bankruptcy comes amid a series of challenges faced by major retailers. Conn’s HomePlus, a prominent furniture retailer, also filed for bankruptcy earlier this year and announced plans to close all of its locations. Similarly, Red Lobster emerged from bankruptcy in May after closing around 100 restaurants.
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