Big Lots filed for Chapter 11 bankruptcy
In September of 2024, retail chain Big Lots filed for Chapter 11 bankruptcy. The company was founded in the late 1960s and had expanded rapidly in the 1980s and 1990s. In 2024, Big Lots planned to close about 35% of their stores nationwide, and states like Maine, Montana, and Vermont saw partial or complete shutdowns of their locations. Over 270 Big Lots stores nationwide have closed thus far.
In this gallery, we take a closer look at the company’s possible return to normalcy.
Sales at stores
High inflation and interest rates had significantly impacted Big Lots, which depends on home and seasonal products for revenue. Sales at stores open at least a year have declined for nine quarters.
Provide financial stability
Big Lots president and CEO Bruce Thorn said, “The actions we are taking today will enable us to move forward with new owners who believe in our business and provide financial stability, while we optimize our operational footprint, accelerate improvement in our performance, and deliver on our promise to be the leader in extreme value.”
Receiving a notice from the NYSE
Big Lots will continue operations during the sale process, planning some store closures. The company secured $707.5 million in financing to support operations during bankruptcy, later receiving a notice from the NYSE due to its low stock price.
Crowded and competitive market
Thorn added, “Big Lots operates in a very crowded and competitive market where other value players do a far better job of delivering on low prices and compelling bargains. It needs to step up its game if it is to succeed post-bankruptcy.”
Dollar Shave Club
Nexus Capital Management acquired Big Lots for $765 million. Nexus is particularly known for investing in companies like Dollar Shave Club and Toms footwear.
Black Friday Fridays
Despite the challenges, Big Lots has prepared for the holiday season with a “Black Friday Fridays” promotion and a new app to improve shopping experiences.