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Big Lots begins liquidation sales following failed company sale negotiations.

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Big Lots begins liquidation sales following failed company sale negotiations.

NEW YORK — The discount retailer Big Lots is initiating going-out-of-business sales at its stores after a proposed sale of the company did not go forward.

Based in Columbus, Ohio, Big Lots, known for its furniture, home decor, and assorted products, filed for Chapter 11 bankruptcy protection in early September. The private equity firm Nexus Capital Management LP had expressed intent to purchase “substantially all of the company’s assets.” However, the chain announced on Thursday that it does not foresee finalizing that purchase agreement. The retailer continues to explore options for either completing a deal with Nexus or pursuing an alternative arrangement with other interested parties.

The company aims to finalize a sale by early January. Their website is currently promoting discounts of up to 50% across the entire range of products as all stores prepare to shut down.

Bruce Thorn, the president and CEO of Big Lots, stated, “We all have worked extremely hard and have taken every step to complete a going concern sale. While we remain hopeful that we can finalize an alternative going concern transaction, in order to protect the value of the Big Lots estate, we have made the difficult decision to begin the GOB process.”

Despite the ongoing challenges, Big Lots continues to serve customers both in-store and online, pledging to keep them informed with updates as they become available.

The company cited high inflation and rising interest rates as significant factors negatively impacting its performance. These economic conditions have led consumers to reduce their spending on home and seasonal goods—two key revenue areas for the chain. Additionally, Big Lots faces intensified competition from retail giants like Walmart and warehouse clubs, including Sam’s Club and Costco, which have all enhanced their pricing strategies and product offerings.

By the end of 2023, Big Lots operated close to 1,400 stores across 48 states; however, a more recent store count has not been disclosed.