Big Lots has announced plans to close all of its stores, marking a significant shift for the discount retailer, which filed for bankruptcy protection in September. Initially, the company intended to sell its assets to private equity firm Nexus Capital Management, but that deal has since fallen through. As negotiations with Nexus continue, Big Lots has initiated preparations for “going out of business” sales across all locations.
Headquartered in Columbus, Ohio, Big Lots operates over 900 stores nationwide, offering a wide range of products including furniture, lawn and garden items, apparel, and health and beauty products. The retailer has been known for providing affordable options for budget-conscious consumers.
CEO Bruce Thorn expressed the challenges faced by the organization, stating that although the team has made significant efforts to pursue a sale that would ensure their continued operation, the decision to begin shutting down stores has become necessary to maintain the value of the company’s assets.
This decision follows prior announcements in August regarding the potential closure of up to 315 stores and additional plans in October to shut down another 56 locations across 27 states. The broader retail landscape is facing difficulties, with over 7,100 store closures announced by U.S. retailers through the end of November 2024, representing a 69% increase compared to the previous year. The year has seen 45 retailers file for bankruptcy protection thus far, compared to 25 for the entirety of 2023, highlighting the ongoing challenges within the retail sector.
Despite the difficult circumstances, there is hope that Big Lots might find a viable solution or potential buyer even as it transitions to shutting down operations. Such situations often lead to the emergence of new retail opportunities or business models that could better suit consumer needs in the future.
In summary, Big Lots is making the tough decision to close all of its stores amid bankruptcy proceedings, reflecting larger struggles within the retail industry.