Big Lots files for Chapter 11 bankruptcy protection, plans to sell assets to Nexus Capital
Discount retailer Big Lots has filed for Chapter 11 bankruptcy protection as it contends with a pullback in consumer spending and soft sales
Discount retailer Big Lots has filed for Chapter 11 bankruptcy protection, as it contends with a pullback in consumer spending and soft sales.
The Columbus, Ohio-based company plans to sell its assets and ongoing business operations to private equity firm Nexus Capital Management.
Big Lots, which sells furniture, home decor and other items, said in a statement on Monday that high inflation and interest rates have hurt its business as consumers have pulled back on their home and seasonal product purchases, two categories the chain depends on for a significant part of its revenue.
Sales at stores open at least a year, a key gauge of a retailer's health, have declined for nine straight quarters, according to FactSet.
Big Lots said that its performance has been improving, but that its board determined during a strategic review that the proposed sale to Nexus was the right move for the business. The company had postponed the release of its second-quarter results to later this week.
The company will continue to sell goods at its stores and on its website during the court-supervised sale process. The chain added that it does plan to close some stores, but didn't specify how many or what locations would be impacted. At the end of 2023, Big Lots operated nearly 1,400 stores in 48 states.
«The actions we are taking today will enable us to move forward with new owners who believe in our business and provide financial stability, while we optimize our operational footprint, accelerate improvement in our performance, and deliver on our promise to be the leader in extreme value,” Big Lots
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