Large lots to close all stores, “going out of business” sales starting soon

New York (CNN) – Big Lots is preparing to close its remaining 963 locations after a sale to save the bankrupt retailer fell through.

The company previously announced it was selling “substantially all” of its assets to private equity firm Nexus Capital Management in September, but Big Lots said in a statement Thursday that it “does not expect to complete” the transaction.

As a result, Big Lots will begin its “going out of business” sale at all remaining locations in the coming days. However, it still plans to explore other options to save the company, including negotiating with Nexus or another buyer, with the goal of completing a sale in early January.

Up to 555 employees will lose their jobs, according to a layoff notice. Among these layoffs include corporate employees, such as the president and CEO.

“We have all worked extremely hard and have taken every step to complete a going concern sale,” Big Lots CEO Bruce Thorn said in a press release. “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 process (of going out of business).”

Big Lots blamed several economic factors for its bankruptcy, including high inflation and interest rates that caused customers to change their purchasing behavior. They seek value – but not necessarily lower costs. That’s why dollar stores have struggled while sales at Walmart and Amazon have boomed.

Big Lots has closed hundreds of stores since the beginning of the year. At its peak, it had more than 1,400 locations across the United States.

Before filing for Chapter 11 bankruptcy protection, Big Lots warned that it had “substantial doubt” about its ability to remain a going concern. A regulatory filing said there is a “significant likelihood” of a potential default on a 2022 loan that could torpedo survival efforts for the 57-year-old retailer.