Big Lots is closing extra shops nationwide, signaling a significant shift for the low cost retailer. Founded in 1967 as Value City, the corporate rebranded to Big Lots in 1982 and expanded its product choices to incorporate every part from furnishings to meals. However, the 57-year-old retailer now faces “substantial doubt” about its capability to stay operational. The firm has cited a number of financial elements, together with excessive inflation and rising rates of interest, as causes for the decreased demand for its shops.
Find out extra in regards to the closures and the state of Big Lots under.
Why Is Big Lots Closing Stores?
Big Lots is getting ready to shut its remaining shops after a possible sale to rescue the bankrupt retailer fell by way of.
In a press launch issued Thursday, the corporate introduced it’s “getting ready to start going-out-of-business (GOB) gross sales in any respect remaining Big Lots places within the coming days” in an effort to guard the worth of its property.
Is Big Lots Going Out of Business?
Big Lots seems to be heading towards closure. The firm had beforehand introduced plans to promote “considerably all” of its belongings to non-public fairness agency Nexus Capital Management in September. However, in an announcement on Thursday, Big Lots confirmed that it “doesn’t anticipate finishing” the transaction.
Despite this setback, the corporate remains to be exploring different avenues to safe its future. Big Lots intends to barter with Nexus or doubtlessly one other purchaser, aiming to finalize a sale by early January.
“We have all labored extremely exhausting and explored each choice to finish a sale that retains the corporate operational,” mentioned Big Lots CEO Bruce Thorn in a press launch. “While we stay longing for another answer, we now have made the troublesome resolution to provoke the going-out-of-business course of as a way to defend the worth of the Big Lots property.”
How Many Big Lots Stores Are Closing?
Big Lots is closing all 963 of its remaining nationwide shops. In September, the retailer revealed plans to shut 340 shops throughout the U.S. earlier than submitting for Chapter 11 chapter safety.
At its peak, Big Lots operated over 1,400 shops throughout the nation.