After filing for Chapter 11 bankruptcy protection this spring, Big Lots has begun “going out of business” sales in all 963 of its remaining stores. The announcement is a key development after the company has battled to find a path to stability, recovering from declining sales and increasing debt.
The Decline of Big Lots
Since then, the discount retail chain Big Lots revealed it is forced to downsize its store footprint, by closing more than 400 stores throughout 2024. Its failure to sell to Nexus Capital Management has forced the company to now liquidate all of its assets. It marks the end of an era for the retailer, which had been a haven for budget shoppers.
Why Did Big Lots File for a Bankruptcy?
As headwinds like inflation and a shift in consumer behavior take a toll, Big Lots has suffered. The sputtering economy and shifting demographics have demonstrated just too much for the company, which battled declining sales and rising debt of approximately $3.1 billion. Despite efforts to rearrange, the financial burden was simply too much.
That economic upheaval is what directly bears responsibility for the Big Lots’ liquidation sales. Such sales are intended to wrap up a company’s last remaining inventory and return something to creditors. But CEO Bruce Thorn said has recognized the dire straits but has said it hopes the deal might come together and save portions of the business in negotiation that’s still underway.
What Shoppers Can Expect
Big Lots has begun its “going out of business” sales, and shoppers can expect to see deep discounts on products from a variety of categories, including furniture, home goods and seasonal items. These sales suggest an opportunity for shoppers looking for extreme bargains before stores close for good.
The closures of Big Lots stores are also resulting in thousands of layoffs across the country. Workers have been notified of potential layoffs, although those could be retracted if a deal is agreed upon last-minute.
A Final Farewell to Big Lots
The news of Big Lots going out of business also serves as a reminder of some of the challenges many brick-and-mortar retail operations are facing in a changing world. While the sales give shoppers value, they also mark the end of a decades-old retail chain. For now, customers are encouraged to run to their local stores ASAP, as this stock is sure to run out quickly.
For now at least, Big Lots is pursuing a buyer or some other deal. The move to liquidation, however, means there isn’t much left time for this retail giant.
