Big Lots announced on Thursday that the bankrupt retail company is planning on closing its remaining 963 store locations after failing to finalize a deal to be sold to a private equity firm.
In a Thursday press release, the company said that it “does not anticipate completing its previously announced asset purchase agreement with Nexus Capital Management, though it continues to work toward completing an alternative going concern transaction with Nexus or another party.”
The press release noted that Big Lots’ goal would be to have a sale completed by early January.
“In parallel with these efforts, the Company is preparing to commence going out of business (“GOB”) sales at all remaining Big Lots store locations in the coming days to protect the value of its estate,” the press release added. “The Company believes that the GOB sales will not preclude it from effectuating a going concern transaction.”
As Big Lots prepares to implement going out of business sales at its remaining locations, the company said it is continuing to provide service for its customers both in-store and online and that the company will provide additional updates when they are available.
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Announcing the company’s decision to close its remaining stores, Big Lots CEO Bruce Thorn said, “We all have worked extremely hard and have taken every step to complete a going concern sale. While we remain hopeful that we can close an alternative going concern transaction, in order to protect the value of the Big Lots estate, we have made the difficult decision to begin the GOB process.”
The retail company’s decision to implement going out of business sales and close its remaining stores comes after Big Lots filed for Chapter 11 bankruptcy in September. According to CNN, the company explained that its bankruptcy was caused by multiple factors, including high interest rates and inflation that caused customers to change the way they purchase products.
CNN reported that while Big Lots once had over 1,400 locations across the country, the iconic retail chain has been closing hundreds of locations over the past year. The outlet also noted that prior to the company’s decision to file for Chapter 11 bankruptcy protection in September, Big Lots had indicated it had “substantial doubt” regarding the ability of the company to continue operating.