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Big Lots, a national retailer based in Columbus, Ohio, announced Thursday that it will begin a going-out-of-business (GOB) sale at all of its remaining stores.
The retail chain also announced that it does not plan to complete its previously announced asset purchase agreement with Nexus Capital Management and will continue to pursue an alternative sale with Nexus or another company. Big Lots, Inc. hopes to complete the sale by early January.
Since no deal has been finalized, the company plans to begin selling GOBs to protect the value of the property.
“All of us worked extremely hard and did everything possible to complete the going concern sale,” said Bruce Thorne, president and CEO of Big Lots. “While we remain hopeful that we can complete an alternative going concern transaction, we have made the difficult decision to begin the GOB process to protect the value of the Big Lots property.”
Massive closure of over 50 retail stores
A close-up photo of a Big Lots store in Los Angeles, California, USA on Saturday, September 7, 2024. (Eric Thayer/Bloomberg via Getty Images/Getty Images)
Big Lots did not immediately respond to FOX Business’ questions or requests for comment for this story.
Big Lots begins Chapter 11 bankruptcy proceedings in early September to facilitate the sale of “substantially all” of its assets to “stalking horse bidder” Nexus Capital Management did.
The discount retailer said at the time that its board of directors said “entering into a sale agreement with Nexus and beginning a court-supervised sale process is the best path forward to maximize value and ensure continued business.” He said he had come to the conclusion. Nexus must be the successful bidder in the court-supervised auction to complete the transaction.
Large amount of bankruptcy filed, some stores closed during sale to investment company
Carl Place, New York: July 23, 2024 at Big Lots Store in Carl Place, New York. (Howard Schnapp/Newsday RM via Getty Images/Getty Images)
Prior to filing for Chapter 11, Big Lots told the SEC it planned to close 35 to 40 stores, but that number quickly grew to hundreds. The retailer operates approximately 1,400 stores across the United States and employs more than 30,000 employees.
Big Lots said in its Chapter 11 filing in September that there would be more store closures, and announced in October that 50 more stores would close.
This discount retailer is known for selling home goods, furniture, seasonal decor, and other products.
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In the second quarter, Big Lots’ net sales were $1.05 billion, down more than 8% compared to the same period last year. The quarterly net loss was approximately $238.46 million.
FOX Business’ Pilar Arias contributed to this report.
