Big Lots filed for bankruptcy, citing inflation and interest rates as the primary drivers behind the filing.
The company filed for Chapter 11 protection, agreeing to sell its assets and business operations to Nexus Capital Management.
The retailer’s CEO, Bruge Thron said the filing will allow Big Lots 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.”
“We appreciate the tremendous loyalty of our customers, and 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. “We are grateful for the hard work and dedication of our associates who remain focused on delivering the best service possible for our valued customers, and we deeply appreciate the partnership of our vendors as we start a new chapter for our business.”
Managing Director of Nexus Evan Glucoft said it aims to “help return this iconic brand to its status as America’s leading extreme value retailer,” adding that “its greatest days are ahead.”
According to a press release, Big Lots has been “adversely affected by recent macroeconomic factors such as high inflation and interest rates that are beyond its control.”
“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 release says.
American Faith reported that Red Lobster also filed for Chapter 11 bankruptcy, with CEO Jonathan Tibus explaining that the filing allows the company to address “financial and operational challenges.”
