Retailer Announces Sales at All Remaining Locations
National retailer Big Lots, based in Columbus, Ohio, has announced the commencement of ‘Going Out of Business’ (GOB) sales across all its remaining stores. The announcement follows a series of financial setbacks and the retailer’s inability to finalize a previously announced asset purchase agreement with Nexus Capital Management. Big Lots hopes to complete a sale with either Nexus or another buyer by early January but has initiated the GOB sales to safeguard the value of its estate.
In a statement, Big Lots President and CEO Bruce Thorn acknowledged the company’s efforts to secure a viable sale. “We all have worked extremely hard and have taken every step to complete a going concern sale,” Thorn said. “While we remain hopeful that we can close an alternative transaction, in order to protect the value of the Big Lots estate, we have made the difficult decision to begin the Going Out of Business process.” The company has not yet responded to further inquiries or comments from media outlets regarding the situation.
Bankruptcy and Failed Agreements
Big Lots initially filed for Chapter 11 bankruptcy in September to facilitate the sale of most of its assets through a court-supervised process. At the time, the company’s board identified the sale agreement with Nexus Capital Management as the optimal path to maximize value and sustain operations. Nexus was designated as the “stalking horse bidder,” a role designed to set the minimum acceptable bid for the auction. However, the anticipated deal remains unfulfilled, prompting the retailer to consider alternative buyers while commencing liquidation sales.
The financial struggles of Big Lots have been mounting for months. Before filing for bankruptcy, the retailer informed the Securities and Exchange Commission (SEC) of plans to close 35-40 stores. This number quickly escalated to hundreds, leaving the fate of its roughly 1,400 stores and over 30,000 employees uncertain. In October, the company announced an additional wave of 50 store closures, further underscoring its precarious position in the retail sector.
A Legacy of Discount Retail
Big Lots has long been recognized as a discount retailer specializing in home goods, furniture, seasonal decorations, and other products. Despite its broad customer base, the company struggled to compete in an increasingly challenging retail environment marked by shifting consumer habits and growing competition from e-commerce giants.
The announcement of Going Out of Business sales signals the potential end of an era for the retailer, which has operated thousands of locations nationwide. While the company explores alternative sale options, the liquidation process will affect its employees, customers, and broader communities that have relied on Big Lots for affordable products.
As the retailer faces an uncertain future, its Chapter 11 filing and subsequent decisions reflect broader trends in the retail industry, where many traditional brick-and-mortar stores have been forced to adapt or close amid changing market dynamics. For now, Big Lots’ focus remains on protecting its estate value while navigating the challenging path ahead.
