Big Lots, after filing for Chapter 11 bankruptcy and closing hundreds of stores, has announced that it will be closing all of its remaining 963 stores following failed sales to a private equity firm, Nexus Capital Management.
The big picture: The company had already closed over 400 stores earlier in the year, reducing its footprint by approximately 30%.
- Despite efforts to secure an alternative deal with Nexus or another party, Big Lots will begin going out of business sales at all locations, starting immediately.
- The pending store closures could potentially be reversed if a successful sale is completed in the future, according to an email to employees from company president and CEO Bruce Thorn.
What we’re watching: The reduction in the workforce for corporate associates is expected to begin in January, as part of the closures.
Flashback: Big Lots had initially filed for bankruptcy in September, citing inflation and struggles with competing retailers as reasons for its financial difficulties.
- Following court approval for the sale of its assets to Nexus Capital Management, the company experienced setbacks in closing the deal, resulting in the decision to cease operations entirely.
