Big Lots will soon start ‘going out of business’ sales at its remaining locations
By Jordan Valinsky, CNN
New York (CNN) — Big Lots is preparing to close its remaining 963 locations after a sale to save the bankrupt retailer fell through.
The company previously announced it was selling “substantially all” of its assets to private equity firm Nexus Capital Management in September, but Big Lots said in a statement Thursday it “does not anticipate completing” the transaction.
As a result, Big Lots is starting its “going out of business” sales at all remaining locations in the coming days. However, it still plans to explore other options to save the company, including negotiating with Nexus or another buyer, with the aim of completing a sale by early January.
Up to 555 employees will lose their jobs, according to a layoff notice. Among those layoffs include corporate employees, such as the president and CEO.
“We all have worked extremely hard and have taken every step to complete a going concern sale,” Big Lots CEO Bruce Thorn said in a press release. “While we remain hopeful that we can close an alternative going concern transaction, in order to protect the value of the Big Lots estate, we have made the difficult decision to begin the (going out of business) process.”
Big Lots blamed several economic factors for its bankruptcy, including high inflation and interest rates that led customers to change their purchasing behavior. They’re seeking out value — but not necessarily lower costs. That’s why dollar stores have been struggling while sales at Walmart and Amazon have been booming.
Big Lots has been closing hundreds of stores since the beginning of the year. At its peak, it had more than 1,400 locations across the United States.
Prior to filing for Chapter 11 bankruptcy protection, Big Lots warned it had “substantial doubt” about its ability to remain operational. A regulatory filing said that there’s a “significant likelihood” of a potential default on a 2022 loan that could torpedo survival efforts for the 57-year-old retailer.
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