Discount retail chain Big Lots has confirmed plans to close all its stores with "going out of business" sales to commence at each of their locations. The Columbus, Ohio-based company is winding down operations, abandoning a previously anticipated sale to Nexus Capital Management, Big Lots announced. This comes on the heels of a Chapter 11 bankruptcy filing made in September, which has since been followed by subsequent store closure announcements.
The retailer, which operates over 900 stores nationwide offering a range of products from furniture to pantry items, had hoped to maintain operations by selling its business to Nexus. However, as negotiations continue to not reach fruition, Big Lots has been left with no choice but to proceed to liquidate its inventory through sales. In the words of CEO Bruce Thorn, "We all have worked extremely hard and have taken every step to complete a going concern sale," noting that "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," according to an announcement reported by CBS News.
In Illinois, 17 Big Lots locations continue to operate, as reported by NBC News. This includes areas such as Bourbonnais, Franklin Park, and Wood Dale. Yet, with the future of these stores hanging in balance, uncertainty looms for these communities. All stores are expected to commence sales to offload remaining stock as the company looks to liquidate its assets.
Notably, the broader U.S. retail landscape has faced considerable challenges. Over 7,100 store closures have been announced up until the end of November 2024—a stark 69% increase from the previous year. The year 2024 has also seen 45 retailers file for bankruptcy protection, almost double the number from 2023, as highlighted by CoreSight Research data mentioned by CBS News. Meanwhile, Big Lots, in the face of these industry headwinds, continues to explore potential sales opportunities, with CEO Bruce Thorn stating, "The company is still seeking out other sale options with the hope of completing a deal by January," as covered by NBC News. However, the process of finding a buyer appears to now be an uphill task.
