Discount retailer Big Lots announced on Monday that it is undergoing a court-supervised sale process, which includes beginning Chapter 11 proceedings in U.S. Bankruptcy Court.
Big Lots said it is selling its assets to Nexus Capital Management after securing over $705 million in financing.
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In recent times, Big Lots has started closing over 300 stores nationwide as the retailer struggled to come out of the COVID-19 pandemic. The company cited high inflation and high interest rates as reasons for its struggles. Big Lots said customers have cut back on discretionary spending on home and seasonal products, which make up a significant portion of Big Lots' sales.
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"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," Big Lots CEO Bruce Thorn said.
The company said it will continue assessing its store footprint, which will likely mean the closure of additional locations.
“Though the majority of our store locations are profitable, we intend to move forward with a more focused footprint to ensure that we operate efficiently and are best positioned to serve our customers. To accomplish this, we intend to use the tools afforded by this process to continue optimizing our store fleet in an orderly manner," Thorn said.
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Big Lots said it intends to continue serving customers in its remaining stores and website through the Bankruptcy process.
