Discount retailer Big Lots has launched “going out of business” sales at all of its remaining locations after a deal to save the company from bankruptcy collapsed.
Big Lots announced the decision on Thursday, three months after filing for Chapter 11 bankruptcy. The company has already closed more than 400 stores in 2024.
“We all have worked extremely hard and have taken every step to complete a going concern sale,” CEO Bruce Thorn said in a press release. “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 [going out of business] process.”
In its bankruptcy announcement, Big Lots said it has been hurt by rising inflation and interest rates. In the months prior, the retailer closed hundreds of stores in an effort to cut costs.
Still, 963 Big Lots stores remained operational as of Thursday, including 50 in New York, 18 in New Jersey and 6 in Connecticut. The company said it would continue selling furniture, home décor and various other items through the bankruptcy process.
Big Lots’ original plan was a sale to Los Angeles-based hedge fund Nexus Capital Management. And while a sale is still possible, the initial plan did not work.
Nexus Capital previously purchased Dollar Shave Club from Unilever in 2023 and brought floral delivery service FTD out of bankruptcy in 2019.