Big Lots, the discount home goods retailer, has launched clearance sales as it prepares to close hundreds of stores after filing for Chapter 11 bankruptcy, the Daily Mail reports.
The Columbus, Ohio-based chain, known for its budget-friendly offerings, announced plans to shutter at least 550 of its 1,389 locations, as part of efforts to restructure and reduce costs.
The retailer has already begun closing several hundred stores, offering discounts between 30% and 50% on items such as sofas, patio furniture, and grills. Shoppers looking for bargains can save hundreds of dollars as the company holds liquidation sales across many of its soon-to-be-closed stores.
Big Lots revealed in court filings that it has already started closing down 295 stores and plans to shut 250 more by January. This follows the closure of 315 stores announced in August. Although a complete list of store closures has not been published, customers can identify closing stores through banners displayed on the company’s website, which also shows how much products are discounted.
The chain’s struggles are part of a broader trend in the US retail industry, where several companies have filed for bankruptcy in recent years. Big Lots is the latest to join the list of major retailers, which includes Red Lobster and other well-known brands like 99 Cents Only, LL Flooring, and Conn’s.
Big Lots is working to sell its business to private equity firm Nexus Capital as it battles with declining sales and mounting debt. The retailer has secured $707.5 million in funding to continue operations but faces uncertainty about its future. Nexus is positioned as a “stalking horse” bidder, meaning it will purchase the company unless a better offer comes forward.
Retail analyst Neil Saunders described the bankruptcy as an “inevitable destination” for Big Lots, which has seen 16 consecutive quarters of declining sales. According to Saunders, one of the main challenges for the chain has been offering poor value, which has driven away customers and undermined its competitive edge.
In the first quarter of 2024 alone, Big Lots reported a loss of $132 million. Store managers have expressed frustration on social media about receiving large quantities of unsellable stock, further exacerbating the company’s problems.
Big Lots’ bankruptcy filing comes amidst what analysts have termed a “retail apocalypse,” with many retailers struggling due to shifting consumer habits, rising costs, and shrinking profit margins. If current trends persist, nearly 8,000 stores across the US could close by the end of 2024.
“The actions we are taking today will enable us to move forward with new owners who believe in our business and provide financial stability,” stated Big Lots CEO Bruce Thorn in response to the bankruptcy.
