BREAKING: Big Lots Begins Going-Out-of-Business Sales

Amid continued financial blows to the retailer, Big Lots may finally be reaching its final end as 2024 comes to a close.

It's been a tough year for the retail and food industry. Perhaps one of the largest companies to have to navigate uncertain financial times is Big Lots, which has closed several stores nationwide over the past few months. While things were starting to look up for the chain ahead of the new year, it seems plans to transfer the company to new ownership have stalled.

Big Lots' Financial Troubles in 2024

In May 2024, the retailer initially announced that they would be closing up to 40 stores after a 10% decrease in sales during the first quarter of 2024. At the time, Big Lots had reported a net loss of $205 million. That number quickly grew after the chain filed for Chapter 11 bankruptcy in September 2024, which resulted in the closure of a store on Diamond Avenue in Evansville and another in Henderson, Kentucky. However, there was hope when it was announced that the company would be acquired by Nexus Capital Management LP, which was expected to bolster the finances of the chain.

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Is Big Lots Going Out of Business?

Unfortunately, as 2024 draws to a close, the asset purchase agreement between Big Lots Inc. and Nexus Capital Management is not expected to move forward. In a press release, Big Lots stated it continues to work toward completing an alternative going-concern transaction with Nexus or another party. 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.

"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," said Bruce Thorn, Big Lots' President and Chief Executive Officer.

What Happens to Big Lots Now?

For those who may be wondering, a going concern sale involves the sale of the business while it is still running, with the intention of maintaining its operations rather than liquidating its assets. While it is currently unknown if such a sale will happen, the company stated that its goal is to have the sale finalized by early January 2025. Meanwhile, the company says it will continue to serve customers, both in-store and online.