Big Lots Files For Bankruptcy

Big Lots, the beleaguered discount retailer that previously warned it had “substantial doubt” about its survival, has filed for bankruptcy, Jordan Valinsky reported for CNN.

Big Lots blamed economic factors for its bankruptcy, including high inflation and interest rates, which have caused customers to change their purchasing behavior. I Photo: Harrison Keely Wikimedia Commons

As part of its Chapter 11 filing, the retailer announced that private equity firm Nexus Capital Management is acquiring “substantially all” of Big Lots’ stores and business operations.

During the process, its locations and website will remain open for shopping.

“The actions we are taking today will enable us to move forward with new owners who believe in our business and provide financial stability, while we optimize our operational footprint, accelerate improvement in our performance, and deliver on our promise to be the leader in extreme value,” said Big Lots CEO Bruce Thorn in a press release.

Big Lots blamed economic factors for its bankruptcy, including high inflation and interest rates, which have caused customers to change their purchasing behavior.

They are seeking value, but not necessarily lower costs. This is why dollar stores have struggled while sales at Walmart and Amazon have boomed, and why McDonald’s has faced challenges while casual chains like Applebee’s have grown.

“The prevailing economic trends have been particularly challenging for Big Lots, as its core customers curbed their discretionary spending on home and seasonal products, which represent a significant portion of the company’s revenue,” the company explained.