Big Lots has filed Chapter 11 bankruptcy, but its online store and physical locations will continue to operate.
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According to CNN, Big Lots CEO Bruce Thorn expressed optimism about the retailer’s acquisition by Nexus Capital Management. “The actions we are taking today will allow us to move forward with new owners who are committed to our business and provide the financial stability needed. This will help us optimize operations, improve performance, and deliver on our promise to lead in extreme value,” he stated.
The company said during a press release that it faced economic challenges such as inflation and high interest rates as the key factors for this financial issue. These factors have led customers to alter their shopping habits, focusing more on value rather than simply seeking the lowest prices. While retailers like Walmart and Amazon have thrived under these conditions, Big Lots has struggled, especially as its core customers reduced discretionary spending on home and seasonal items—categories that contribute significantly to its revenue.
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The retailer is currently in the process of closing 300 of its 1,400 stores across the United States but further closures have not been reported. However, Big Lots stated that it would possibly need to close more locations to make sure the business runs smoothly so they can continue operations. Additionally, Big Lots has secured $707.5 million in fresh financing to continue paying employees and vendors.