Big Lots, a popular discount retailer, has filed for Chapter 11 bankruptcy protection. The company has struggled to navigate tough economic conditions, including reduced consumer spending and inflation.
The filing reportedly allows Big Lots to restructure its debts and attempt a turnaround by continuing its operations during the bankruptcy process.
In recent months, Big Lots has faced declining sales, along with a shift in consumer behavior towards online shopping, which has further impacted its brick-and-mortar stores.
Despite efforts to streamline operations and close underperforming stores, the company has been unable to stabilize its finances.
This bankruptcy filing is the latest in a series of financial struggles affecting large retailers in the U.S., as many have had to adjust to changing market dynamics and consumer preferences.
Earlier this year, America’s popular Seafood chain “Red Lobster” filed for Chapter 11 bankruptcy protection as well.
The chain revealed in a court filing at the time that Red Lobster’s estimated assets are between $1 billion and $10 billion, while its estimated liabilities are between $1 billion and $10 billion.
In September 2023, Rite Aid also announced it was filing for bankruptcy and closing stores nationwide.
At the time, the pharmacy talked about closing as many as 500 stores, and either sell or let creditors take over its remaining operations.
