A bankrupt home retailer now announces more painful closures, bringing its total number of shutters to more than 550 locations.
Discount home goods retailer Big Lots has been scaling back its operations for over a month following its Chapter 11 bankruptcy filing.
On October 11, the company announced the closure of an additional 56 locations, bringing the total number of store closures to over 550.
Big Lots filed for Chapter 11 protection on September 9 in the U.S. Bankruptcy Court for the District of Delaware, aiming to sell its assets to stalking-horse bidder Nexus Capital Management for a bid of $760 million.
This bid includes $2.5 million in cash, debt repayment, and the assumption of certain liabilities.
The retailer has set a new deadline of October 23 for additional asset bids, with an auction scheduled for October 28 if multiple offers are received.
A hearing to approve the sale is proposed for November 8.
Founded in 1967, Big Lots initially announced plans to close 344 stores across the country on September 11.
This was followed by a second list on September 20, adding 49 more closures, and a third list on September 27, which included 58 additional locations.
A fourth list on October 4 designated another 46 stores for liquidation.
The latest announcement of 56 closures brings the total to 553 of the 1,392 stores the retailer operated in 48 states before filing for bankruptcy.
The Columbus, Ohio-based company cited intense competition, disruptions caused by COVID-19, a challenging high-interest-rate environment, and a less reliable supply chain that increased operating costs as reasons for its bankruptcy filing, according to court documents.
Recently, Big Lots has faced difficulties due to economic downturns that have negatively impacted customer spending and profits, as noted by CEO Bruce Thorn.
The company reported a 10.2% decline in sales to $1.01 billion during the first quarter, along with a loss of $132.3 million.
Big Lots is currently the fourth-largest home goods retailer in the U.S., with general operating revenues of $4.7 billion in 2023.
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Also Read: A Struggling Gas Station Chain Now Files An Unexpected Bankruptcy
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