Big Lots to Close All Remaining Stores, Begins “Going Out of Business” Sales
About the Announcement
Big Lots is preparing to close all of its remaining locations after filing for bankruptcy three months ago, it announced in a press release Thursday.
The Closure Process
The discount retailer will begin “going out of business” sales, or “GOB” sales, at its 963 remaining stores ahead of the closures, the press release stated. It’s unclear how long the stores will remain open.
Previous Attempts at Sale
After filing for Chapter 11 bankruptcy in September and closing 400 of its locations around the country, the Columbus, Ohio-based company announced it anticipated selling its remaining assets and business operations to private equity firm Nexus Capital Management. The sale received court approval in late October with an expected closure date of early December, but according to the press release, the company no longer expects the deal to go through.
Future Plans
Big Lots president and CEO Bruce Thorn said in the release that the company is still seeking out other sale options with the hope of completing a deal by January. The release also said the company does not anticipate that the GOB sales will inhibit any potential future asset deals.
Industry Context
Big Lots is one of the many businesses across the country which have filed for bankruptcy in 2024, which saw a 16.2% increase in filings compared with the previous year, according to the United States Courts database. The retail landscape alone saw 49 bankruptcy filings, NBC News reported, up from 25 in 2023. Over 7,300 store closures have been reported this year to date, led by Family Dollar (718), CVS (586) and Big Lots (580).
Other notable retailers to file for bankruptcy this year include Red Lobster, although the popular seafood chain announced it had survived its Chapter 11 proceedings in early September.
Conclusion
In conclusion, Big Lots is facing a significant challenge with the announcement of its impending closure. While the company is exploring alternative sale options, the reality is that many employees will be left without jobs and communities will lose a staple business.
Frequently Asked Questions
Q: How many Big Lots stores will close?
A: All 963 remaining Big Lots stores will close as part of the “going out of business” sales.
Q: What will happen to the company’s assets?
A: The company is exploring alternative sale options, including a potential deal by January, to sell its remaining assets and business operations.
Q: How long will the stores remain open?
A: It’s unclear how long the stores will remain open as part of the “going out of business” sales.
Q: Why did Big Lots file for bankruptcy?
A: The company filed for bankruptcy after struggling with debt and declining sales.
