Big Lots Stores Closing List and Its Impact on the Retail Landscape

Challenges Faced by Big Lots

Big Lots is facing some serious issues in the retail world. The discount retail chain filed for Chapter 11 bankruptcy on Monday after postponing its earnings report. It's also planning to shutter 295 of its roughly 1,400 stores, according to a filing in Delaware's bankruptcy court.

Private equity firm Nexus Capital Management plans to acquire Big Lots for an undisclosed amount after it emerges from bankruptcy, as indicated by the retailer's announcement on Monday. Nexus already owns several consumer brands, including Dollar Shave Club and shoe brand Toms.

Factors Contributing to the Closure

• High interest rates.
• Inflation impacting sales.
• Customers trimming non-essential purchases.

Many of its customers have cut back spending on home decor and other non-essential purchases that make up most of what Big Lots stocks, the company added. Plenty of shoppers are adjusting their budgets, especially for purchases they can live without, like eating out or upgrading their home appliances.

Big Lots has long marketed itself as a place to find great deals; it claims to buy products cheaply from suppliers and other retailers, allowing them to keep prices low. However, this business model seems challenged during tough economic times.

Big Lots did not respond to a request for comment from Business Insider. For more insights on the current retail environment and the status of Big Lots, visit a nearby store.