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National retailer Big Lots, based in Columbus, Ohio, announced Thursday that it will begin going out of business (GOB) sales at all of its remaining stores.
The retail chain also announced that it does not expect to terminate the previously announced asset purchase agreement with Nexus Capital Management and will continue to work for another auction through Nexus or another company. Big Lots, Inc. expects the sale to be completed by early January.
Since there is no set agreement, the company will start selling GOB to protect the value of its assets.
“We all worked very hard and took every step to complete the sale,” said Big Lots’ President and CEO Bruce Thorn. “While we remain hopeful that we can close an alternative course of action, in order to protect the value of the Big Lots estate, we have made the difficult decision to begin the GOB process.”
LARGE CLOSING PLACES OVER 50 SHOPPING LOCATIONS
A closer look at the Big Lots store in Los Angeles, California, US, Saturday, September 7, 2024. (Eric Thayer/Bloomberg via Getty Images/Getty Images)
Big Lots did not immediately respond to FOX Business’ inquiries and a request for comment on the matter.
Big Lots filed for Chapter 11 bankruptcy in early September to facilitate the sale of “all” of its assets to “horse bidder” Nexus Capital Management.
The discount retailer said at the time its board decided “entering into a sale agreement with Nexus, and beginning a court-supervised sale process, is the best way forward to maximize value and ensure continued operations.” Nexus must be the winning bidder of the court-supervised auction for the transaction to close.
LARGE LOT OF FILES TO BE COVERED, WILL CLOSE SOME SHOPS AMIDST CAMP SALES
Carle Place, NY: Big Lots store in Carle Place, New York on July 23, 2024. (Howard Schnapp/Newsday RM via Getty Images/Getty Images)
Before filing Chapter 11, Big Lots told the SEC that it planned to close 35-40 stores, which quickly grew to hundreds. The retailer operates approximately 1,400 stores across the US and employs more than 30,000 people.
In filing for Chapter 11 in September, Big Lots said it would close more stores, and in October, it announced that 50 more stores would close.
The discount retailer is known for selling home furnishings, furniture, seasonal decorations and other products.
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In the second quarter, Big Lots generated $1.05 billion in net sales, a decrease of more than 8% compared to the same three-month period last year. Its net loss for the quarter was about $238.46 million.
FOX Business’ Pilar Arias contributed to this report.
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