They are shutting down.
Big Lots, the discount retail chain, announced on Thursday that it will begin “going out of business” sales at all of its remaining stores after failing to finalize a deal with investment firm Nexus Capital Management. In a statement, the company explained that the move is intended to protect its assets, and it will continue serving customers both in-store and online while providing updates as necessary.
CEO Bruce Thorn stated that Big Lots had been in discussions to sell the company to Nexus, but the deal ultimately fell through. He emphasized that while the company remains hopeful of finalizing a sale, it has made the tough decision to start the liquidation process to safeguard the company’s value. Thorn expressed the company’s commitment to exploring potential deals with Nexus or other parties by early next month.
Big Lots, headquartered in Columbus, Ohio, operates over 1,400 stores across 48 states. The company has faced significant challenges in recent months, including declining sales and financial pressure, which led to its filing for Chapter 11 bankruptcy. Its assets and liabilities are estimated between $1 billion and $10 billion, with a creditor list numbering between 5,000 and 10,000.
The company’s previous deal with Nexus involved a “stalking horse bid,” a type of initial offer in a court-managed auction, which would have closed by the end of 2024 if Nexus was chosen as the highest bidder. The economic conditions, including inflation, have also contributed to Big Lots’ struggles, with customers cutting back on discretionary spending, particularly on home and seasonal goods, which account for a large portion of its revenue.
Big Lots’ stock has seen a dramatic decline, dropping over 98% in the past year. As of Thursday, its stock fell another 7%, reaching approximately $0.09 per share, compared to about $7 per share a year ago. The company’s financial woes reflect broader economic pressures, such as persistent inflation, which has impacted consumer spending habits across the country.
