Discount retail chain Big Lots is preparing to close all of its remaining stores across the United States, announcing going out of business sales at all locations. This decision follows the collapse of negotiations for the sale of the company to private equity firm Nexus Capital Management. Big Lots’ President and CEO Bruce Thorn confirmed on December 7, 2023, the company will commence sales at its approximately 963 locations, including its last store in Minnesota located in Blaine.
Starting soon, these sales aim to protect the estate's value, as expressed by Thorn, who stated, "...we have made the difficult decision to begin the GOB process.” Already, over 400 stores have closed this year, signifying around 30% of its footprint, as Big Lots struggles to adapt to consumer shifts influenced by high inflation and high-interest rates.
Employees have been informed about the closure dates; many stores will see the end of operations by late February 2024. "We were told our store would be closing soon," said Melissa Kellum, assistant store manager at the Lufkin location. The chain's move has resulted in the layoff of around 555 employees after filing for Chapter 11 bankruptcy protection earlier this year.
Big Lots once flourished with over 1,400 stores at its peak, becoming known for discounted items and overstock merchandise. Its financial struggles have deep roots linked to shifting consumer habits, as well as the impact of discount giant competitors like Walmart and Amazon. The store closures highlight significant employee and customer losses, pointing to how broader economic turbulence affects retail markets.
The impact will be felt across all remaining locations, which as of now includes about 963 stores, all of which will be conducting closing sales soon. The going-out-of-business sales will feature discounts of up to 50%, particularly on seasonal items like Christmas decor, with shoppers advised to expect final sale conditions on all items sold.
Big Lots' failure to conclude its sale to Nexus Capital Management had been awaited since September when the company announced it was planning to sell "substantially all" of its assets. The statement on December 7 outlined the inability to resolve the purchasing agreement stating, "We do not anticipate completing..." the deal.
Despite their difficulties, Big Lots remains optimistic about exploring alternative transactions with other interested parties before the bankruptcy proceedings lead to final closures. Thorn emphasized, “While we remain hopeful...to protect the value of the Big Lots estate...,” vowing to seek viable solutions moving forward.
Store closures will affect communities previously served by Big Lots, marking the end of availability for many low-income households reliant on discount shopping options. This chain’s exit from the market symbolizes broader shifts occurring within retail sectors nationally as businesses adapt to new consumer purchasing behaviors driven partly by economic pressures.
Locations like those near The Villages, Ocala, and multiple neighborhoods across New York will see the significant community effect of losing access to Big Lots, once known for its expansive inventory spanning furniture, home decor, toys, and food items.
Founded by Sol Shenk as Consolidated Stores back in 1967, the chain transitioned to the Big Lots brand by 1982. Over the decades, it established itself as a go-to discount retailer across the country, but now, it sadly faces its demise amid financial difficulties.
Shoppers and employees alike have expressed sadness over the closures, as the company previously represented more than just retail – it became part of daily life for many shoppers. The challenges Big Lots faced reflect those of many traditional retailers struggling against the tide of e-commerce and changing customer needs.
Whilst Big Lots attempts to find solutions, the clock is ticking down toward the end of its operations. Each closure reflects the collective loss of part of American retail history, highlighting the need for adaptation and innovation moving forward. While the company turns its focus on closing down its operations, the retail world watches closely, considering the consequences of such closures on local economies and job markets.
