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National retailer Big Lots, based in Columbus, Ohio, announced Thursday that it will begin holding going-out-of-business (GOB) sales at all of its remaining stores.
The retail chain also announced that it does not anticipate completing a previously announced asset purchase agreement with Nexus Capital Management and will continue to work toward an alternative sale with Nexus or another company. Big Lots, Inc. expects to complete the sale in early January.
Without an agreement in place, the company will begin sales of the GOB to protect the value of its equity.
“We have all worked very hard and taken every step to complete a going concern sale,” said Big Lots President and CEO Bruce Thorn. “While we remain hopeful that we can close an alternative going concern transaction, to protect the value of Big Lots’ equity, we have made the difficult decision to begin the GOB process.”
LARGE LOTS TO CLOSE OVER 50 RETAIL LOCATIONS
A close-up look at a Big Lots store in Los Angeles, California, U.S., on Saturday, September 7, 2024. (Eric Thayer/Bloomberg via Getty Images/Getty Images)
Big Lots did not immediately respond to questions from FOX Business or a request for comment on the matter.
Big Lots entered Chapter 11 bankruptcy proceedings in early September to help facilitate the sale of “substantially all” of its assets to its “stalker bidder” Nexus Capital Management.
The discount retailer said at the time that its board had concluded that “entering into the sales agreement with Nexus and initiating a court-supervised sale process is the best path forward to maximize value and ensure continuity.” of operations”. Nexus must be the winning bidder in a court-supervised auction for the transaction to close.
LARGE LOTS FILE FOR BANKRUPTCY, SOME STORES WILL CLOSE IN THE MIDDLE OF SALE TO AN INVESTMENT FIRM
Carle Place, New York: The Big Lots store in Carle Place, New York, on July 23, 2024. (Howard Schnapp/Newsday RM via Getty Images/Getty Images)
Before filing for Chapter 11, Big Lots told the SEC that it planned to close between 35 and 40 stores, which quickly grew to hundreds. The retailer operates about 1,400 stores across the United States and employs more than 30,000 workers.
In its Chapter 11 filing in September, Big Lots said there would be additional store closures, and in October, it announced another 50 stores would close.
The discount retailer is known for selling home goods, furniture, seasonal decorations and other products.
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In the second quarter, Big Lots generated $1.05 billion in net sales, a decline of more than 8% compared to the same three-month period last year. Its quarterly net loss was almost $238.46 million.
FOX Business’ Pilar Arias contributed to this report.
