Big Lots Starts Going-Out-of-Business Sales as Bankruptcy Deal Falls Through

Image Alt Text: A sign advertising the Big Lots store closing sale in Daytona Beach, FL, on October 3, 2024.

Discount home furnishings retailer Big Lots has announced the start of liquidation sales at its remaining locations after a previously planned sale to a private equity group failed to go through. The company’s future is now uncertain, as it continues to explore alternative options for a potential sale or transaction.

Big Lots Closes Stores as Bankruptcy Restructuring Efforts Falter

Big Lots, a major player in discount furniture and home decor, is beginning going-out-of-business sales at its remaining locations across the U.S. after a deal to sell the company to a private equity firm, Nexus Capital Management, fell apart. The retailer, based in Columbus, Ohio, had initially filed for Chapter 11 bankruptcy protection in September after suffering ongoing financial losses.

The company stated in a press release on Thursday that it no longer expects to complete the previously announced agreement with Nexus. However, it is still working on securing an alternative deal, either with Nexus Capital or another party.

Retail Industry Struggles Continue in 2024

The failure of the Big Lots deal marks another setback for the retail sector, which has faced significant challenges in 2024. According to Coresight Research, a consumer insights firm, the U.S. saw 49 retail bankruptcies this year—more than double the 25 bankruptcies recorded in 2023.

Big Lots itself has announced the closure of 580 stores this year, contributing to the overall rise in retail closures. In comparison, other major retailers like Family Dollar and CVS have also seen large numbers of closures, with 718 and 586 stores shut down, respectively.

Big Lots Bankruptcy and Retail Closures Across the U.S.

Coresight Research’s data confirms that more than 7,300 retail stores have closed in 2024, compared to 4,627 closures at the same time last year. This ongoing trend highlights the continued difficulties faced by brick-and-mortar stores, especially in the discount and home decor sectors, as online shopping continues to dominate.

As Big Lots’ liquidation sales begin, the retailer faces an uncertain future, with many wondering whether other struggling companies will follow suit in the coming months.

Source: NBC News