After months of working through Chapter 11 bankruptcy processes, attempted mergers and various closures, Big Lots has announced a bleak new update for the company’s future.
Big Lots announced it is closing all its stores and hosting going out of business (GOB) sales at all 960 Big Lots locations nationwide after a failed merger with Nexus Capital Management.
In a statement, the company said it “continues to work toward completing an alternative going concern transaction with Newus or another party,” and the goal is to complete a sale by early January — which is only about two weeks away.
“We all have worked extremely hard and have taken every step to complete a going concern sale,” Big Lots’ President and Chief Executive Officer Bruce Thorn said in the statement.
“While we remain hopeful that we can close 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,” Thorn continued.
Bankruptcy speculation began circulating around the company earlier this year after Big Lots revealed plans to close 35 to 40 stores by the end of 2024, federal filings show.
The number of slated closures skyrocketed to nearly 300 locations by August. At that time, the company listed 1,389 stores in operation, MassLive previously reported.
More change came to the company just weeks later, with Big Lots officially filing for bankruptcy in September and announcing plans to sell the business to an affiliate of Nexus Capital Management LP.
As part of the agreement, Nexus Capital Management agreed to acquire all of the company’s assets and ongoing business operations.
At that time, Big Lots cited “recent macroeconomic factors,” such as high inflation and interest rates as the cause for the company’s financial strains.
Ongoing economic trends curbed customers from spending on home and seasonal products which “represent[s] a significant portion of the Company’s revenue,” it said.
As part of the selling agreement, the company agreed to sell the business for about $760 million, consisting of $2.5 million in cash as well as its debts and liabilities.
However, according to a December press release, that deal is no longer in the works.
The release states it “no longer anticipates closing previously announced sale to Nexus Capital Management,” and that it “continues to pursue a going concern transaction.”
Its website advertises “ALL STORES CLOSING,” and those who choose to shop the sale can save up to 50% off the entire store.
There are 17 Big Lots locations in Massachusetts.
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