For struggling retailer Big Lots, the other shoe has dropped. The company has filed for bankruptcy protection and will sell itself to an affiliate of private-equity firm Nexus Capital Management.
Like many other discounters – other than Walmart – Big Lots has struggled as inflation began to take off in 2021. Its core customer base shifted spending from discretionary items to necessities. The company has been losing money each quarter since 2022.
In a July filing with the Securities and Exchange Commission (SEC), Big Lots showed a loss of $205 million for the 13 weeks that ended May 4. The company also said it expects there will be even more operating losses and it cited "substantial doubt" about its ability to continue as a going concern. It’s already closed more than 100 of its stores.
The company says regular Big Lots customers have nothing to worry about. It says Nexus has agreed to acquire substantially all of the company's assets and ongoing business operations.
Business will go on
To facilitate the transaction, the company, together with each of its subsidiaries, initiated voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware. During and after this process, Big Lots will continue to serve customers at their nearest store location or online at biglots.com.
"We are proud of the work we do every day across Big Lots to provide our customers with unmistakable value and exceptional savings, as well as building stronger communities through our philanthropic efforts,” said Big Lots President and CEO Bruce Thorn.
“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 va
Big Lots also disclosed that it ha lined up $707.5 million in financing to carry the retailer through the restructuring and sale process.