Big Lots performs sale after sale of business falls through

NEW YORK (AP) – Discount chain Big Lots is conducting off-site sales at its remaining locations after a sale of the business did not materialize.

The Columbus, Ohio-based retailer, which sells furniture, home decor and other items, filed for chapter 11 bankruptcy protection in early September, saying that private equity firm Nexus Capital Management LP had agreed to acquire “substantially all of the company’s assets.” But on Thursday, the chain said it did not expect to complete the purchase agreement. It said it continues to work toward completing an alternative transaction with Nexus or another party.

Big Lots said its goal would be to complete a sale in early January. According to the company’s websitediscounts of up to 50% were offered on the entire range and it announced that all stores were closing.

“We have all worked extremely hard and have taken every step to complete a going concern sale,” Bruce Thorn, Big Lots’ president and CEO, said in a statement. “While we remain hopeful that we can complete an alternative going concern transaction, in order to protect the value of Big Lot’s property, we have made the difficult decision to begin the GOB process.”

Big Lots said it continues to serve customers in-store and online and will provide updates as they become available.

Big Lots has said high inflation and interest rates have hurt its business as consumers cut back on home and seasonal produce purchases, two categories the chain relies on for a significant portion of its revenue. The company has also struggled with increased competition from the likes of Walmart and warehouse clubs like Walmart’s Sam’s Clubs and Costco, all of which have tightened their prices and merchandise.

By the end of 2023, Big Lots operated nearly 1,400 stores in 48 states. A more recent store count was not immediately available.