Big Lots Files for Bankruptcy, Nexus Capital to Take Over Stores

COLUMBUS, OH – Big Lots announced on Monday, September 9, 2024, that it is filing for Chapter 11 bankruptcy. 

The discount retailer credited the decision to several economic pressures, including high inflation and rising interest rates, which have led its core customers to reduce spending on home and seasonal products—a major source of revenue for the company.

As part of the bankruptcy proceedings, private equity firm Nexus Capital Management will take over nearly all of Big Lots' stores and business operations.

Nexus Capital will act as a "stalking horse" bidder in a court-supervised auction, with the sale open to higher or better offers. If Nexus Capital secures the bid, the transaction is expected to close in the fourth quarter, according to reports.

To support its operations during this transition, Big Lots has secured $707.5 million in financing, with $35 million in new funding. This funding will help the company continue its operations, pay employees, and settle with vendors.

Big Lots plans to close approximately 300 of its 1,400 stores across 48 states, with the possibility of more closures in the future. 

CEO and Big Lots President Bruce Thorn explained that while most store locations are profitable, the company aims to streamline its operations to better serve its customers. 

“The actions we are taking today will enable us to move forward with new owners who believe in our business and provide financial stability,” said Thorn in a statement.

The retailer is part of a growing list of well-known companies facing financial difficulties as consumers cut back on non-essential purchases. 

Despite the bankruptcy and sale process, Big Lots will continue to serve customers both in-store and online at biglots.com.