Big Lots files bankruptcy amid closing 74 stores in California

CALIFORNIA – Big Lots announced September 9, that they are filing Chapter 11 bankruptcy in an effort to reorganize its debts and continue operating.

The announcement comes amid closure of 74 store locations in California and 315 stores nationwide.

“The actions we are taking today will enable us to move forward with new owners who believe in our business and provide financial stability, while we optimize our operational footprint, accelerate improvement in our performance, and deliver on our promise to be the leader in extreme value,” said Big Lots president and CEO Bruce Thorn.

$707.5 million in financing

Big Lots has entered into an agreement with Nexus Capital Management to sell nearly all its assets and business operations.

In connection with the Chapter 11 court-supervised process, the discount retailer secured commitments for $707.5 million of financing, including $35 million in new financing.

During and after this process, Big Lots will continue to serve customers at their nearest store location or online.

High inflation and interest rates

Big Lots says like many other retail businesses, they have been adversely affected by recent broad economic factors such as high inflation and interest rates.

“The prevailing economic trends have been particularly challenging to Big Lots, as its core customers curbed their discretionary spending on the home and seasonal product categories that represent a significant portion of the Company’s revenue,” reads a statement in the news release.

Going forward, the discount retailer will continue to assess its operational footprint, which will include closing additional store locations.

Big Lots is currently holding a Halloween closeout sale with hundreds of new items selling for 50-70% less than their original retail prices.

For more information about the Big Lots restructuring visit https://www.bigstepforbiglots.com/