Big Lots has announced plans to close all of its stores, following the company’s recent bankruptcy declaration. Initially, the retailer aimed to sell its assets to Nexus Capital Management. However, this prospective deal has since fallen through, which has prompted Big Lots to begin the process of shuttering its 900-plus locations across the U.S.
In an effort to mitigate its losses, Big Lots will conduct “going out of business” sales at all of its stores. The chain, known for providing affordable furniture, lawn and garden items, apparel, and other consumer goods, has positioned itself as a destination for bargain hunters.
Big Lots CEO Bruce Thorn expressed the challenge of this decision, stating that the company has exhaustively worked towards securing a transaction that would allow it to continue operating. Nonetheless, in order to protect its assets, the company felt it necessary to initiate these closures.
After filing for bankruptcy protection in September, Big Lots previously planned to close up to 315 locations, with additional store closures announced just last month. The current landscape for U.S. retailers is tough, with over 7,100 store closures projected by the end of November 2024, marking a significant increase compared to the previous year. The retail sector has seen 45 bankruptcy filings this year alone, a stark contrast to the 25 filings recorded throughout all of 2023.
While this news is disheartening for employees and customers alike, it reflects larger shifts in the retail sector that may pave the way for new opportunities. As the market evolves, consumers may see a rise in innovative retail concepts and local businesses stepping in to fill the void left by closing chains. This situation serves as a reminder of the ever-changing nature of retail and consumer behavior.