Big Lots, the once-prominent discount retailer, has announced plans to close all of its remaining stores following months of financial struggles and an unsuccessful bid to secure a buyer. The company, which filed for Chapter 11 bankruptcy in September, will commence going-out-of-business (GOB) sales in the coming days, according to a press release issued Thursday. This marks the end of a 57-year history for the Columbus, Ohio-based chain.
The collapse follows the breakdown of a potential sale to Nexus Capital Management. While Big Lots had expressed optimism about the deal earlier this year, sources report that an inventory valuation falling below expectations rendered the acquisition unfeasible for the private equity firm.
Big Lots CEO Bruce Thorn confirmed the closure plans but left the door slightly ajar for a possible lifeline. "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 said in the statement. He noted that the company is exploring potential buyers, including Nexus or other interested parties, with hopes of finalizing a deal by early January. However, the company is proceeding with liquidation sales as it waits for an unlikely turnaround.
The liquidation process will affect all of the roughly 870 remaining Big Lots locations. While exact timelines for the sales were not provided, the company indicated they would begin within days. This follows a year in which Big Lots already shuttered over 400 stores amid declining consumer spending and inflationary pressures.
The announcement also raises significant concerns for Big Lots' approximately 27,000 employees. The company did not address the fate of its workforce in the statement, but experts suggest most employees are likely to lose their jobs once the store closures are completed.
The financial decline of Big Lots in 2024 has been dramatic. After previously trading on the New York Stock Exchange under the ticker "BIG," the company's shares have collapsed, now trading over-the-counter under the ticker "BIGGQ" at just 8 cents per share. This represents a year-to-date decline of nearly 99%.
Founded in 1967 as Consolidated International, Inc., the retailer changed its name to Big Lots in 2001 and became known for its bargain deals and extensive selection of home goods, furniture, and seasonal items. However, changing market dynamics and competition from e-commerce giants have left the company unable to recover from mounting losses.
Big Lots' bankruptcy filing earlier this year initially seemed like a path to recovery. The retailer had announced a deal with Nexus Capital Management to sell most of its assets and business operations. However, with that agreement now void, the company has been forced to pivot to full liquidation.
The company's fate has also drawn attention to the broader challenges faced by the retail sector. Analysts point to factors such as rising operational costs, shifts in consumer behavior, and competition from online marketplaces as contributing to the struggles of many brick-and-mortar chains.
Despite these setbacks, Thorn emphasized that the company would continue serving customers in-store and online during the liquidation period. For consumers, this signals an opportunity to purchase deeply discounted items, though the window for these sales may be limited.
