US discount retailer begins epic 'going out of business' sales as it prepares to close all locations
Big Lots is beginning 'going out of business' sales at all its stores across the US, as it prepares to close its remaining locations.
The discount retail chain filed for Chapter 11 bankruptcy in September, and has already shut hundreds of stores nationwide.
In a press release Thursday, the company said it would begin the 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, marking a 30 percent decrease in its footprint.
In an email to employees shared with Nexstar, president and CEO Bruce Thorn said that the pending store closures could 'be reversed if we successfully complete a sale.'
He added that Big Lots is continuing its efforts to secure an alternative deal with the 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 reduction in the workforce would be necessary, however, and layoffs would begin in January, KTLA reported.
Big Lots is beginning 'going out of business' sales at all its stores across the US, 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 major factor for customers ditching Big Lots was that it is bad bad value, which 'undermines the retailer's key point of differentiation.'
Shortly after filing, the company said it planned to sell its assets and business operations to Nexus Capital Management.
The deal was expected to close earlier this month, but faltered, KTLA reported.
Alongside planned closures, the chain also announced a surprise round of store closures in November.
Some stores have remained open for weeks or even months after closing down sales began at particular locations earlier this year.
It is unclear how long these newly announced closing down sales will last before the stores are permanently shuttered.
The Ohio-based chain filed for bankruptcy in September, after years of major losses
The store sells furniture and homeware alongside toys, beauty products and groceries
The Chapter 11 filing from Big Lots is one of many high profile bankruptcies this year, which also included restaurant chain Red Lobster and retailer Esprit.
US retailers have closed 7,308 stores so far this year in what has been dubbed a 'retail bloodbath.'
Many legacy chains have struggled to bring in shoppers in 2024 whose wallets have been hit by years of rampant inflation, and are failing to compete with the expansion of online shopping options.
By mid-December, 49 retailers had filed for bankruptcy, compared to just 25 in 2023, according to the latest data from Coresight.
In the week ending December 13, 129 stores closed across the country, including 41 Family Dollar locations, 20 Dollar Generals and eight Dollar Trees.
Family Dollar, which operates under the Dollar Tree brand, has closed the most stores in the last couple of years, shuttering 718 locations since the start of 2023.
Big Lots, meanwhile, closed 349 in the same period.
