Big Lots to Close Remaining Locations After Filing for Bankruptcy
Company Announces "Going Out of Business" Sales at Remaining Stores
Big Lots, a discount retailer, is preparing to close all of its remaining locations after filing for bankruptcy three months ago. The company will begin "going out of business" (GOB) sales at its 963 remaining stores, according to a press release issued on Thursday.
Background on Bankruptcy Filing
Big Lots filed for Chapter 11 bankruptcy in September and subsequently closed 400 of its locations around the country. The company had announced its intention to sell its remaining assets and business operations to private equity firm Nexus Capital Management, but that deal has fallen through.
New Developments
The company’s president and CEO, Bruce Thorn, stated that Big Lots is still seeking alternative sale options and hopes to complete a deal by January. The company does not anticipate that the GOB sales will hinder any potential future asset deals.
Retail Industry Trends
The retail landscape has seen a significant increase in bankruptcy filings this year, with a 16.2% rise compared to the previous year, according to the United States Courts database. The sector has reported 49 bankruptcy filings, with over 7,300 store closures to date, led by Family Dollar, CVS, and Big Lots.
Conclusion
Big Lots’ decision to close its remaining locations is a significant blow to the retail industry, which has been grappling with challenges in recent years. The company’s announcement is a testament to the tough conditions faced by many retailers, with many others, such as Red Lobster, also facing similar difficulties.
Frequently Asked Questions
Q: How many Big Lots locations will be closed?
A: All 963 remaining Big Lots locations will be closed.
Q: Why is Big Lots closing its locations?
A: After filing for bankruptcy, Big Lots was unable to complete a sale of its assets and business operations to private equity firm Nexus Capital Management, and is now preparing to close its remaining stores.
Q: What is the timeline for the closures?
A: The company has not specified a exact date for the closures, but will begin "going out of business" sales at its remaining stores soon.
Q: What is the current state of the retail industry?
A: The retail landscape has seen a significant increase in bankruptcy filings and store closures, with over 7,300 reported closures this year.
