Big Lots Faces Bankruptcy and Transition in Retail Landscape

Big Lots Files for Bankruptcy

Big Lots, the beleaguered discount retailer that previously warned it had substantial doubt about its survival, has filed for bankruptcy. As part of its Chapter 11 filing, the retailer announced that private equity firm Nexus Capital Management is acquiring substantially all of Big Lots stores and business operations. During the process, its locations and website will remain open for shopping.

Economic Factors Impacting Big Lots

The actions we are taking today will enable us to move forward with new owners who believe in our business and provide financial stability while we optimize our operational footprint. Bruce Thorn, Big Lots CEO, expressed that the circumstances leading to this decision were caused by high inflation and interest rates dramatically affecting consumer purchasing behavior.

Store Closures and Future Plans

More store closures could be coming, too. Big Lots is in the process of closing roughly 300 of its 1,400 stores across the United States. Although no additional closures were announced Monday, Big Lots has warned of future necessary cutbacks to ensure continued customer service.

Financial Support and Next Steps

The 57-year-old company has secured $707.5 million in fresh financing to keep operating and to pay employees and vendors. Nexus was named the stalking horse bidder, with its acquisition expected to close later this year unless there are better offers.

Broader Retail Trends

Big Lots joins a growing list of well-known retailers hitting financial turbulence as customers cut back spending on non-essential items. The landscape of retail continues to shift, posing challenges particularly for discount retailers.