new York
CNN
—
Big Lots prepares to close its remaining 963 locations after a sale to save the bankrupt retailer fell into the water.
The company previously announced it was selling “substantially all” of its assets to private equity firm Nexus Capital Management in September, but Big Lots said in a statement Thursday that it “does not plan to finalize.” the transaction.
As a result, Big Lots will begin “going out of business” sales at all remaining locations in the coming days. However, he still plans to explore other options to save the business, including negotiating with Nexus or another buyer, with the aim of finalizing a sale by early January.
Up to 555 employees will lose their jobs, according to a notice of dismissal. Among these layoffs are company employees, such as the president and CEO.
“We have all worked extremely hard and taken every step necessary to complete a working sale,” Bruce Thorn, CEO of Big Lots, said in a press release. “While we remain hopeful that we can complete an alternative going concern transaction, in order to protect the value of the Big Lots estate, we have made the difficult decision to begin the (going-concern) process.”
Big Lots blamed its bankruptcy on several economic factors, including high inflation and interest rates that caused customers to change their purchasing behavior. They are looking for value, but not necessarily lower costs. This is why dollar stores are struggling while sales at Walmart and Amazon are booming.
Big Lots has closed hundreds of stores since start of the year. At its peak, it had more than 1,400 locations across the United States.
Before filing for Chapter 11 bankruptcy, Big Lots warned that it had “substantial doubts” about its ability to remain operational. A regulatory filing says there is a “significant probability” of a potential default on a 2022 loan that could torpedo the 57-year-old retailer’s survival efforts.