Big Lots closes all stores after bankruptcy and failed sale with Nexus Capital

(TNND) — Big Lots is preparing to close all remaining locations after closing hundreds of stores and filing for Chapter 11 bankruptcy, the company announced Thursday.

In a press release, the company said it is “preparing to begin going out of business at all remaining Big Lots stores in the coming days.” The decision comes after the company failed to complete a sale agreement with Nexus Capital Management, a private equity firm.

The hill reports that more than 400 Big Lots stores, out of 900 total, have closed this year, marking a 30% reduction for the brand.

In one e-mail to employees, shared with Nexstar and reported by The Hill, President and CEO Bruce Thorn stated that the planned store closings could be “reversed if we successfully complete a sale.”

“In the meantime, we will continue to serve our customers both in-store and online,” Thorn added.

Regarding staffing, Thron said in the email that “a reduction in the (work) force is necessary,” adding that the reduction in the workforce for corporate employees will begin in January. Some employees may receive WARN Act (Worker Adjustment and Retraining Notification Act) notification of layoffs.

“I recognize this is difficult news for all of us. You should be proud of the grit and resilience you have demonstrated through what I know has been a challenging time,” Thorn wrote in the email.

Earlier this year, inflation and retail competition created problems for Big Lots, pushing it to file for bankruptcy in September. After archiving, Big Lots said it had plans to sell all assets and business operations to Nexus.

Court approval for the sale went through in November, and the sale was expected to close in December, but it did not go through.

Big Lots is among many large retailers and chains closing down in 2024.