Big Lots, a discount chain, has officially filed for Chapter 11 bankruptcy after indicating “substantial doubts” about its continued quality before now. One of the steps they intend to take as part of their recovery plan is shuttering a large chunk of their retail outlets. This action follows persistent financial problems such as declining demand and rising costs of doing business.
To continue with its business during the bankruptcy process, Big Lots secured $707.5 million in financing. The firm has also revealed intentions to sell its assets to Nexus Capital Management, which is a private equity firm. In short, Nexus would be referred to as the “stalking horse bidder,” meaning that the bid from this entity sets the minimum amount at which any bids can be considered during the court-supervised auctioning process. Provided there are no better offers by then, this transaction is expected to close by the fourth quarter of 2024.
Bruce Thorn (CEO) said, “Today’s decisions will allow us to go forward under new proprietors who have faith in our business and want us financially sound.” He further said he would rather the company focus more on reducing overheads than opening new stores since most of them still make money.
What Led to the Bankruptcy?
Finances at Big Lots have been tight for quite some time now, and with massive declines in sales, their balance sheet has taken quite a hit. The company’s difficulties reflect wider problems in retail, where bankruptcy filings surged throughout 2024 due to inflation and consumer changes. 21 retailers had declared bankruptcy by mid-July, according to S&P Global.
Even though customers are still searching for cheap deals, they do not prefer the inexpensive goods that Big Lots sells. This was explained by the company, stating, “Current economic conditions have been particularly hard on Big Lots customers whose discretionary spending on home and seasonal items constituting an important section of the company’s revenue streams fell drastically.”.
Nevertheless, Big Lots said its second-quarter results are consistent with previous predictions. Initially scheduled to issue the results on September 6th, they postponed it until September 12th. The company hopes that concentrating on its restructuring strategy along with the Nexus Capital acquisition will help stabilize its future.
Store Closures
Big Lots modified its credit agreements this year so it can shut down stores, and in July it said that 315 stores might close. Although Big Lots hasn’t published any complete lists of store closures, it confirmed 295 closings through its bankruptcy document in Delaware. Additionally, there are more than 100 other venues for which leases would likely be terminated by September, according to the filing.
There are around 1400 stores owned by Big Lots in the USA dealing with approximately 30000 employees. For instance:
Arizona
- 1416 E Route 66, Flagstaff, AZ
- 17510 N 75th Ave, Glendale, AZ
- 2020 N 75th Ave Ste 40, Phoenix, AZ
- 230 E Bell Rd, Phoenix, AZ
- 3630 W Baseline Rd, Laveen, AZ
- 2840 E Main St, Ste 109, Mesa, AZ
- 4525 N Oracle Rd, Tucson, AZ
- 6839 E Main St, Mesa, AZ
- 4727 East Bell Rd, Phoenix, AZ
California
- 1482 E 2nd St, Beaumont, CA
- 9500 Greenback Ln Ste 22, Folsom, CA
- 52 W Court St, Woodland, CA
- 3900 Sisk Road, Modesto, CA
- 42225 Jackson St Ste B, Indio, CA
- 6336 E Santa Ana Canyon Rd, Anaheim, CA
- 810 Tri City Ct, Redlands, CA
- 568 W Main St Ste B, Santa Paula, CA
- 19331 Soledad Canyon Rd, Canyon Country, CA
- 2620 Canyon Springs Parkway, Riverside, CA
- 1702 Oceanside Blvd, Oceanside, CA
- 1211 Olive Dr, Bakersfield, CA
- 1531 Sycamore Ave, Hercules, CA
- 14907 4th Ave SW, Burien, WA
- 4847 Coconut Creek Pkwy, Coconut Creek, FL
- 2236 SE Federal Hwy, Stuart, FL
- 3517 W Baseline Rd, Laveen, AZ
- 360 E 10th St, Gilroy, CA
- 3331 Corridor Marketplace, Laurel, MD
- 1531 Sycamore Ave, Hercules, CA
Colorado
- 2151 Main St, Longmont, CO
- 6626 South Parker Road, Aurora, CO
- 2401 N Ave Ste 19B, Grand Junction, CO
- 8100 W Crestline Ave Unit B5, Littleton, CO
Connecticut
- 56 Turnpike Square, Milford, CT
- 40 Boston Post Rd, Waterford, CT
- 1470 Pleasant Valley Road, Manchester, CT
Florida
- 328 E Sugarland Hwy, Clewiston, FL
- 700 Blanding Blvd Ste 1, Orange Park, FL
- 5580 NW 167th St, Miami Lakes, FL
- 2236 SE Federal Hwy, Stuart, FL
- 3921 Oakwood Blvd, Hollywood, FL
- 25191 Chamber of Commerce Dr, Bonita Springs, FL
- 1761 E Hallandale Beach Blvd, Hallandale, FL
- 11230 S Orange Blossom Trl, Orlando, FL
Georgia
- 13051 Abercorn St, Savannah, GA
- 687 Main St, Thomson, GA
Illinois
- 340 Summit Drive, Lockport, IL
- 1608 N Larkin Ave, Crest Hill, IL
- 7233 W Dempster St, Niles, IL
Indiana
- 8401 Michigan Rd, Indianapolis, IN
- 2136 E Markland Ave, Kokomo, IN
- 9602 Georgia St, Crown Point, IN
Iowa
- 430 W 5th St, Des Moines, IA
Kansas
- 7533 State Ave, Kansas City, KS
Louisiana
- 3557 Ambassador Caffery Pkwy, Lafayette, LA
- 339 South Dr, Natchitoches, LA
Maine
- 250 Main St, Portland, ME
Maryland
- 3331 Corridor Marketplace, Laurel, MD
- 21800 N Shangri La Dr Unit 20, Lexington Park, MD
Massachusetts
- 400 Main St, Dennis Port, MA
Michigan
- 4254 28th St. SE, Kentwood, MI
- 2850 Washtenaw Ave, Ypsilanti, MI
- 6207 S Westnedge Ave, Portage, MI
- 2020 Grand River Ave, Okemos, MI
Minnesota
- 2614 Bridge Ave, Albert Lea, MN
Missouri
- 4930 Christy Blvd Ste 2, Saint Louis, MO
- 13637 Washington St, Kansas City, MO
- 1417 N Belt Hwy, Saint Joseph, MO
Montana
- 2930 Prospect Ave, Helena, MT
New Mexico
- 5555 Zuni Rd SE, Albuquerque, NM
New York
- 260 Voice Rd, Carle Place, NY
- 231 Centereach Mall, Centereach, NY
- 751 Upper Glen St, Ste 2, Queensbury, NY
North Carolina
- 2000 Avondale Dr Ste E, Durham, NC
Ohio
- 9876 W 16th St, Columbus, OH
Oregon
- 2025 Lancaster Dr. NE, Salem, OR
- 2000 14th Ave SE, Albany, OR
Pennsylvania
- 713 E Baltimore Ave, Clifton Heights, PA
- 201 West Lincoln Hwy, Exton, PA
South Carolina
- 1016 Pine Log Rd, Aiken, SC
- 1841 J A Cochran Byp Ste A, Chester, SC
- 1937 Wilson Rd, Newberry, SC
South Dakota
- 1617 Eglin St, Rapid City, SD
Tennessee
- 1234 Elm St, Nashville, TN
Texas
- 123 Main St, Dallas, TX
Utah
- 1617 North Main Street, Logan, UT
- 1030 North Main Street, Layton, UT
Virginia
- 7743 Sudley Rd, Manassas, VA
Washington
- 6727 Evergreen Way, Everett, WA
- 2815 Capital Mall Drive SW, Olympia, WA
- 1940 E 1st St, Port Angeles, WA
- 14215 SE Petrovitsky Rd, Renton, WA
- 14907 4th Ave SW, Burien, WA
- 5710 196th St SW, Lynnwood, WA
Wisconsin
- 5415 Washington Ave, Mount Pleasant, WI
- 3426 Kohler Memorial Dr, Sheboygan, WI
- 1690 S Main St, West Bend, WI
- N78W14511 Appleton Ave, Menomonee Falls, WI
- 616 W Johnson St, Fond Du Lac, WI
