Big Lots has announced that it will close all of its stores, marking a significant step in its ongoing bankruptcy process. The retailer had previously aimed to sell its assets to Nexus Capital Management, but that agreement appears to be off the table as the company seeks other strategic options. In the meantime, Big Lots will begin “going out of business” sales across its more than 900 locations in the U.S.
Based in Columbus, Ohio, Big Lots offers a variety of consumer goods, including furniture, garden supplies, and appliances, and has marketed itself as a source for budget-conscious shoppers. CEO Bruce Thorn acknowledged the challenges facing the company, stating that despite the hard work of the team to secure a sale, the decision to start closing stores was necessary to protect the remaining value of the business.
To encourage customers to shop before their locations close, Big Lots has announced discounts of up to 50% on merchandise available through its website, while also confirming the imminent shutdown of all physical stores.
The company filed for bankruptcy protection in September 2023, initially planning to sell to Nexus Capital. However, earlier announcements indicated that Big Lots planned to close a significant number of stores, with 315 slated for closure in August and another 56 planned for closure in October across 27 states.
This news comes amid a broader trend in the U.S. retail sector, which has seen over 7,100 store closures by the end of November 2024—a 69% increase from the previous year. The retail industry has faced considerable challenges, with 45 retailers filing for bankruptcy so far this year, nearly doubling the total from the entirety of 2023.
While the closure of Big Lots is undoubtedly difficult for employees and loyal customers alike, it reflects the realities of a rapidly changing retail landscape that demands adaptability and resilience. As the company embarks on this transition, it serves as a reminder of the need for retailers to innovate and evolve in order to meet consumer needs effectively.
Summary: Big Lots is closing all of its stores after the collapse of its planned sale to Nexus Capital Management, initiating going-out-of-business sales as it files for bankruptcy. With over 900 locations in the U.S., the retailer has faced severe challenges in a rapidly evolving retail market, which has seen a surge in store closures and bankruptcies in recent months.