Discount retailer Big Lots is initiating liquidation sales at its remaining stores after plans for an acquisition fell through.
Located in Columbus, Ohio, Big Lots specializes in furniture, home decor, and various other merchandise and sought Chapter 11 bankruptcy protection in early September. The company had announced that private equity firm Nexus Capital Management LP was prepared to buy “substantially all of the company’s assets.” However, it was revealed on Thursday that they do not expect to finalize the purchase agreement. The retailer is still exploring potential alternative transactions with Nexus or other interested parties.
Big Lots aims to complete a sale by early January. On their website, they are currently offering discounts of up to 50% across their entire product range and have declared the closure of all stores.
Bruce Thorn, President and CEO of Big Lots, expressed that despite their diligent efforts to finalize a go-forward sale, the company made the challenging decision to initiate the going-out-of-business process to preserve the value of the brand’s assets. “While we remain hopeful that we can close an alternative going concern transaction,” he said, “we have made the difficult decision to begin the GOB process.”
The company emphasizes that it will continue serving customers via both in-store and online platforms, with further updates to be provided as they become available.
Big Lots cites the impact of high inflation and rising interest rates as significant challenges facing its operations, resulting in a decline in consumer spending in key categories like home goods and seasonal products that contribute to a large portion of its revenue. Additionally, the retailer faces intensified competition from giants such as Walmart and membership warehouses like Sam’s Club and Costco, which have aggressively adjusted their pricing and inventory strategies.
As of late 2023, Big Lots operated nearly 1,400 locations nationwide across 48 states, although recent figures regarding its store count have not been disclosed.