Discount retailer Big Lots announced that it is starting Going Out of Business sales at all of its remaining stores… while it still hopes for a deal that will save the company and keep the retailer open.
As I was writing this story this morning, the narrative from Big Lots was updated from “preparing to commence Going Out of Business Sales” to a much more definitive website website banner “All Stores Closing – Now Save Up To 50% Off Entire Store”
Having already filed for Chapter 11 bankruptcy protection, the company had previously announced that they had an asset purchase agreement with Nexus Capital Management… which as part of that agreement included the closing of over 400 stores in 2024 alone.
The store closings earlier this year were targeted at creating a stronger, more financially solvent company… which included South Jersey closings (completed and in-process) in Glassboro, Millville, Mays Landing and Cherry Hill.
The Big Lots location page lists 18 locations in New Jersey, with stores in our area still open in Sicklerville and West Deptford as well as Cape May, and Cape May Court House (Cherry Hill and Millville still also show as open, but had previously been listed as stores that were closing)
Despite all the of the closings in 2024 and this latest announcement it does appear that the company still has strong hopes for a sale, and in their press release states their goal would be to complete it by early January.
“We all have worked extremely hard and have taken every step to complete a going concern sale. While we remain hopeful that we can close an alternative going concern transaction, in order to protect the value of the Big Lots estate, we have made the difficult decision to begin the GOB process.”
Bruce Thorn, Big Lots’ President and Chief Executive Officer – Press Release
A “going concern transaction”… means a transaction that will provide enough funding to continue the company successfully and avoid bankruptcy closure of the company.
From my perspective it feels like there’s some “Reading Between The Lines” that needs to take place with this move… such as, is this a procedural move related to the bankruptcy proceedings, or maybe they’re putting pressure on Nexus Capital Management to close the final details of the agreement?
Big Lots is an American discount retail chain offering deep discounts on every day products as well as a significant offering in “in stock, take home now” furniture.
In early September, Big Lots announced they had filed for Chapter 11 Bankruptcy with a plan to close additional stores under their new leadership.
As part of the initial announcement of the Chapter 11 bankruptcy proceedings, the associated Store Closings were initiated to facilitate “a more focused footprint” and make the business more financially sound as they move into new ownership.
That new ownership was expected to be Nexus Capital Management which is an investment firm with a portfolio of well known brands including FTD Florists and Dollar Shave Club,
Big Lots, Inc. (the “Company”) today announced that it does not anticipate completing its previously announced asset purchase agreement with Nexus Capital Management, though it continues to work toward completing an alternative going concern transaction with Nexus or another party. The Company’s goal would be to complete a sale by early January.