Big Lots to Shut Down Additional 56 Locations as Bankruptcy Deepens

According to The Sun, A major discount retailer, Big Lots, is set to close an additional 56 locations as part of its Chapter 11 bankruptcy process, highlighting the escalating strain on the retail sector. Following weeks of speculation, the beloved chain confirmed it would shutter 295 of its stores, with around 250 more slated for closure before January 15, 2025.

Currently, Big Lots operates 1,389 branches across 48 states, with only Alaska and Hawaii lacking locations. The Ohio-based retailer is now in the process of selling its assets to a private firm following its bankruptcy declaration.

Big Lots President and CEO Bruce Thorn addressed the situation in a recent press release, stating, “Though the majority of our store locations are profitable, we intend to move forward with a more focused footprint to ensure that we operate efficiently and are best positioned to serve our customers.” He emphasized the need to optimize their store fleet in an orderly manner.

Retail Apocalypse

Big Lots is not alone in facing challenges within the retail landscape. The sector has been grappling with changing consumer behaviors, the rise of e-commerce, and inflationary pressures exacerbated by the pandemic. Retail experts note that many chains are in financial trouble due to increased borrowing costs and tightening consumer wallets. According to analysis by retail data provider CoreSight, there has been a 24% increase in store closures in 2024 alone.

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In September, Big Lots entered a sale agreement with investment firm Nexus Capital Management. Thorn reiterated the retailer’s commitment to maintaining a “more focused” retail footprint to ensure profitability and emphasized the plan to aggressively address underperforming stores.

The struggling retailer has experienced declining sales, with net sales down $114.5 million in the first quarter of 2023. Nexus Capital’s initial bid sets a minimum price for the sale, serving as a benchmark for other potential buyers.

Customers Fume Over Closures

The rapid downsizing of Big Lots has sparked frustration among both customers and employees. Loyal shoppers have taken to social media to express their dismay, with comments like, “Why why I go cry,” and “Sign of the times.”

The deadline for submitting bids on Big Lots is tomorrow, October 15, leaving many wondering about the future of the beloved discount retailer.