Columbus, Ohio – Big Lots, the struggling discount retailer, has filed for Chapter 11 bankruptcy protection. As part of the bankruptcy proceedings, private equity firm Nexus Capital Management is acquiring “substantially all” of Big Lots’ stores and business operations.
Despite the bankruptcy filing, Big Lots’ stores and website will remain open for customers to continue shopping. The company’s CEO, Bruce Thorn, stated that the acquisition by Nexus Capital Management will provide financial stability and allow Big Lots to optimize its operations and improve its performance.
Several economic factors contributed to Big Lots’ bankruptcy, including high inflation and interest rates. These factors led to a shift in consumer purchasing behavior, with customers seeking value but not necessarily lower prices. This trend has benefited dollar stores and larger retailers like Walmart and Amazon, while hurting businesses like McDonald’s and casual chains like Applebee’s.
Big Lots has already announced plans to close approximately 300 of its 1,400 stores across the United States. The company warns that additional store closures may be necessary to ensure efficient operations and continued service to customers.
