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Big Lots, the popular discount retailer, has filed for Chapter 11 bankruptcy. The Ohio-based company has been facing significant financial challenges, previously warning that it had “substantial doubt” about its ability to survive. As part of its bankruptcy filing, Big Lots announced a deal to sell “substantially all” of its stores and operations to private equity firm Nexus Capital Management.
Despite the filing, Big Lots’ locations and online platform will remain open for shopping during the restructuring process. According to CEO Bruce Thorn, the bankruptcy is a key step toward improving the retailer’s future. “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,” Thorn said in a press release.
As part of its Chapter 11 proceedings, Big Lots will close more stores to streamline its operations. In July, the retailer announced plans to close 35 to 40 stores, which later expanded to 315 closures by August, according to USA Today. These closures are aimed at creating a “more focused footprint,” ensuring the company can operate efficiently in the long term.
Nexus Capital Management’s acquisition will allow Big Lots to stabilize financially while continuing to serve its customers. The sale agreement is part of the broader strategy to improve performance and profitability. The retailer also plans to optimize its distribution centers, ensuring smoother operations as it moves forward under new ownership.
Big Lots remains committed to its roots as a discount retailer, focused on providing “unmistakable value” to its loyal customers. While some stores will close, the company will work on improving the profitability of its remaining locations. “We are taking every step possible to improve the profitability of all our stores,” Thorn added.
The filing for Chapter 11 bankruptcy was initiated in the U.S. Bankruptcy Court for the District of Delaware. The process will allow Big Lots to restructure its debt while making the sale to Nexus Capital subject to higher or better offers.
As the company navigates through bankruptcy, its focus remains on delivering value to shoppers. The new ownership by Nexus Capital is expected to bring increased financial stability, helping Big Lots move toward a more sustainable future.