Yahoo Finance Big Lots Files for Bankruptcy: CEO Promises 'Extreme Bargains' Will Continue, but What Will Happen to the Stores?
The company thanked customers for their loyalty throughout the years
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Big LotsMajor discount chain Big Lots has announced it is filing for Chapter 11 bankruptcy.
In a statement shared with PEOPLE, on Monday, Sept. 9, the retailer confirmed it has entered into an agreement with Nexus Capital Management in which the private equity firm “has agreed to acquire substantially all” of Big Lots’ “assets and ongoing business operations.”
Big Lots said that the current economy coupled with customers' changing spending habits were the driving force of its bankruptcy filing: “Like many other retail businesses, the Company has been adversely affected by recent macroeconomic factors such as high inflation and interest rates [to combat inflation] that are beyond its control."
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Big Lots"The prevailing economic trends have been particularly challenging to Big Lots, as its core customers curbed their discretionary spending on the home and seasonal product categories that represent a significant portion of the Company’s revenue,” the statement continued.
Despite the bankruptcy filing, Big Lots isn't going dark: Stores not slated for closure will remain operational — though, of the company’s 1,400 locations nationwide, several hundred are set to shutter, according to CNN.
Related: J.C. Penney Files for Bankruptcy in the Wake of Coronavirus Pandemic
“Though most of our stores are profitable … we will need to close certain locations to ensure that our business operates efficiently and we can continue serving our customers,” the company explained on a website related to the bankruptcy announcement, Big Step for Big Lots, which also stated it remains committed to a focus “on owning the extreme bargain space.”
Big Lots' president and CEO, Bruce Thorn, addressed the bankruptcy as well, saying in a statement: “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.”
Related: Pier 1 Asks Bankruptcy Court to Close All of Its Stores for Good amid Coronavirus Pandemic
Thorn thanked customers for their loyalty throughout the years and said "our core purpose of helping them ‘Live BIG and Save LOTS’ has never been stronger."
"As we move through this process, we remain committed to offering extreme bargains, enabling easy shopping in our stores and online, and providing an outstanding customer experience,” he said.
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