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Big Lots is closing more stores nationwide, signaling a major shift for the discount retailer. Founded in 1967 as Value City, the company rebranded to Big Lots in 1982 and expanded its product offerings to include everything from furniture to food. However, the 57-year-old retailer now faces “substantial doubt” about its ability to remain operational. The company has cited several economic factors, including high inflation and rising interest rates, as reasons for the decreased demand for its stores.
Find out more about the closures and the state of Big Lots below.
Why Is Big Lots Closing Stores?
Big Lots is preparing to close its remaining stores after a potential sale to rescue the bankrupt retailer fell through.
In a press release issued Thursday, the company announced it is “preparing to begin going-out-of-business (GOB) sales at all remaining Big Lots locations in the coming days” in an effort to protect the value of its estate.
Is Big Lots Going Out of Business?
Big Lots appears to be heading toward closure. The company had previously announced plans to sell “substantially all” of its assets to private equity firm Nexus Capital Management in September. However, in a statement on Thursday, Big Lots confirmed that it “does not anticipate completing” the transaction.
Despite this setback, the company is still exploring other avenues to secure its future. Big Lots intends to negotiate with Nexus or potentially another buyer, aiming to finalize a sale by early January.
“We have all worked incredibly hard and explored every option to complete a sale that keeps the company operational,” said Big Lots CEO Bruce Thorn in a press release. “While we remain hopeful for an alternative solution, we have made the difficult decision to initiate the going-out-of-business process in order to protect the value of the Big Lots estate.”
How Many Big Lots Stores Are Closing?
Big Lots is closing all 963 of its remaining nationwide stores. In September, the retailer revealed plans to close 340 stores across the U.S. before filing for Chapter 11 bankruptcy protection.
At its height, Big Lots operated over 1,400 stores across the country.
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