Discount Chain Big Lots Conducts Going-Out-of-Business Sales Amid Bankruptcy
A sign is posted in front of a Big Lots store in Hercules, California, as the company conducts going-out-of-business sales at its remaining locations. Big Lots, a Columbus, Ohio-based retailer, filed for Chapter 11 bankruptcy protection in early September and had agreed to sell its assets to private equity firm Nexus Capital Management LP. However, the company announced on Thursday that it does not anticipate completing the purchase agreement and will instead begin going-out-of-business sales at all its locations.
The retailer, which sells furniture, home decor, and other items, said it will offer discounts of up to 50% on its entire assortment and will continue to serve customers in-store and online. Big Lots’ president and CEO, Bruce Thorn, stated that the company has worked hard to complete a going concern sale, but has been unable to do so.
The company’s decision to begin going-out-of-business sales comes as it struggles with high inflation and interest rates, which have led to a decline in consumer spending on home and seasonal products. Big Lots has also faced increased competition from retailers like Walmart and warehouse clubs like Sam’s Clubs and Costco, which have sharpened their pricing and merchandise.
At the end of 2023, Big Lots operated nearly 1,400 stores in 48 states. The company aims to complete an alternative transaction with Nexus or another party by early January.