Why it matters: Tcount retailer Big Lots is poised to liquidate its remaining stores after the company’s bankruptcy restructuring plans collapsed.he Columbus, Ohio-based company had about 27,700 employees and more than 1,300 stores in 48 states when it filed for Chapter 11 bankruptcy protection in September.
The big picture: Dollar stores and discount stores catering to lower-income shoppers have been under pressure as their target audience pinched pennies.
With Big Lots in crisis mode earlier this year, the company turned to more of the “extreme” bargains it has long considered its sweet spot — but those deals weren’t enough to stave off financial ruin.
Big Lots store closings
Between the lines: Big Lots had been hoping to stay in business by closing hundreds of unprofitable stores and arranging a $620 million sale to private equity firm Nexus Capital Management.
But the deal fell apart, Big Lots said Thursday in a statement.
As a result, the company said it will initiate going-out-of-business sales at all of its locations “in the coming days.”
Yes, but: It will call off the liquidation if it can reach a last-minute company-saving deal with Nexus or another entity, the company said.
The company’s goal is to complete a sale by early January, it said.
What they’re saying: “We all have worked extremely hard and have taken every step to complete a going concern sale,” CEO Bruce Thorn said in a statement. Orignal Source