US discount retailer begins epic ‘going out of business’ sales as it prepares to close all locations
Big Lots will begin out-of-business sales at all of its U.S. stores as it prepares to close its remaining locations.
The discount store chain filed for bankruptcy in September and has already closed hundreds of stores across the country.
In a news release Thursday, the company said it would begin sales at its 963 remaining locations after a sale to a private equity firm fell through.
More than 400 Big Lots stores have already closed this year, representing a 30 percent decrease in footprint.
In an email to employees shared with Nexstar, president and CEO Bruce Thorn said the pending store closures “may be reversed if we successfully complete a sale.”
He added that Big Lots is continuing its efforts to strike an alternative deal with private equity firm Nexus Capital Management, or with another party.
“In the meantime, we will continue to serve our customers both in-store and online,” he continued.
He added that a workforce reduction would be necessary, however, and layoffs would begin in January. KTL reported.
Big Lots begins out-of-business sales at all its U.S. stores as it prepares to close its remaining locations
The Ohio-based chain filed for bankruptcy in September after years of major losses.
Retail analyst Neil Saunders said at the time that bankruptcy was “the inevitable destination” for a chain that had posted 16 consecutive quarters of sales declines.
Saunders, head of retail at GlobalData, pointed out that a key factor for customers ditching Big Lots was that it was poor, poor value, which “undermines the retailer’s key point of differentiation.”
Shortly after the filing, the company said it planned to sell its assets and business to Nexus Capital Management.
The deal was expected to close earlier this month but faltered, KTLA reported.
In addition to planned closures, the chain also announced a surprising series of store closures in November.
Some stores have remained open for weeks or even months after sales began in certain locations earlier this year.
It is unclear how long these newly announced closing sales will last before the stores are permanently closed.
The Ohio-based chain filed for bankruptcy in September after years of major losses
The store sells furniture and home goods, in addition to toys, beauty products and groceries
Big Lots’ Chapter 11 filing is one of several high-profile bankruptcies this year, also involving restaurant chain Red Lobster and retailer Esprit.
U.S. retailers have closed 7,308 stores so far this year in what has been called a “retail bloodbath.”
Many traditional chains have struggled to attract customers in 2024 whose wallets have been hit by years of rampant inflation, and are failing to compete with the expansion of online shopping options.
According to the latest figures, 49 retailers had filed for bankruptcy as of mid-December, compared to just 25 in 2023. facts from Coresight.
During the week ending December 13, 129 stores closed nationwide, including 41 Family Dollar locations, 20 Dollar Generals and eight Dollar Trees.
Family Dollar, which operates under the Dollar Tree brand, has closed most of its stores in recent years, closing 718 locations since early 2023.
Big Lots, meanwhile, closed 349 during the same period.