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National retailer Big Lots, which is located Columbus, Ohioannounced on Thursday that it will launch Going Out of Business (GOB) sale at all its remaining stores.
The retail chain also announced that it does not expect to complete the 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 the sale to be completed by early January.
With no deal finalized, the company will initiate a GOB sale to protect the value of its assets.
“We have all worked very hard and taken every step to complete the ongoing sale,” said Bruce Thorn, president and CEO of Big Lots. “While we remain hopeful that we can close an alternative going concern transaction to protect the value of the Big Lots estate, we have made the difficult decision to initiate the GOB process.”
More than 50 retail locations will be closed
A close-up view of the Big Lots store in Los Angeles, California, US, on Saturday, September 7, 2024. (Eric Thayer/Bloomberg via Getty Images/Getty Images)
Big Lots did not immediately respond to Fox Business’ questions and request for comment on the matter.
Big Lots began Chapter 11 bankruptcy proceedings in early September to facilitate the sale of “all of its assets” to its “stalking horse bidder” Nexus Capital Management.
discount retailer It said at the time that its board had concluded that “entering into a sale agreement with Nexus, and initiating a court-supervised sale process, is the best path forward to maximize value and ensure continued operations.” Nexus must be the winning bidder of the court-monitored auction to close the transaction.
Large number files for bankruptcy, some stores to close amid sale to investment firm
Carle Place, NY: The Big Lots store at Carle Place, New York on July 23, 2024. (Howard Schnapp/Newsday RM via Getty Images/Getty Images)
before filing Chapter 11Big Lots told the SEC it planned to close 35–40 stores, which quickly grew to hundreds. The retailer operates approximately 1,400 stores across the US and employs more than 30,000 employees.
In a Chapter 11 filing in September, Big Lots said that additional stores would be closing, and in October, it announced that 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 net sales of $1.05 billion, a decline of more than 8% compared to the same three-month period last year. Its quarterly net loss was approximately $238.46 million.
Fox Business’ Pilar Arias contributed to this report.
