As 2024 draws to a close, Big Lots may finally be nearing the end of its existence due to ongoing financial setbacks.
The food and retail industries have had a difficult year. Big Lots, which has closed multiple stores around the country in recent months, is arguably one of the biggest businesses to have to deal with uncertain financial circumstances. Plans to move the business to new ownership appear to have stagnated, even though things were beginning to improve for the chain before the new year.
Big Lots’ Financial Troubles in 2024
The business first said in May 2024 that it would close up to 40 outlets following a 10% drop in revenue in the first quarter of 2024. Big Lots reported a $205 million net loss at the time. After the chain filed for Chapter 11 bankruptcy in September 2024, closing two stores on Diamond Avenue in Henderson, Kentucky, and Evansville, Kentucky, that number rapidly increased. Nonetheless, there was optimism when it was revealed that Nexus Capital Management LP would buy the business, which was anticipated to improve the chain’s financial situation.
Is Big Lots Going Out of Business?
Unfortunately, it is not anticipated that the asset purchase deal between Nexus Capital Management and Big Lots Inc. will proceed as 2024 comes to an end. Big Lots said in a news release that it is still working to close a different going-concern deal with Nexus or another party. To preserve the value of its estate, the company is also getting ready to start going-out-of-business (“GOB”) sales at all of the remaining Big Lots store sites in the next few days.
“To finalize a going concern transaction, we have all put in a great deal of effort and done everything we could. Bruce Thorn, the president and CEO of Big Lots, stated, “We have made the difficult decision to start the GOB process in order to preserve the value of the Big Lots estate, even though we are still hopeful that we can close an alternative going concern transaction.”
What Happens to Big Lots Now?
For those inquiring, an agoing concern sale is the sale of a business while it is still operating, with the goal of preserving its operations as opposed to selling off its assets. The firm claimed that its objective is to have the sale completed by early January 2025, albeit it is still unclear if such a sale will occur. The business claims that it will keep providing both in-person and online client service in the interim.
Note: Every piece of content is rigorously reviewed by our team of experienced writers and editors to ensure its accuracy. Our writers use credible sources and adhere to strict fact-checking protocols to verify all claims and data before publication. If an error is identified, we promptly correct it and strive for transparency in all updates, feel free to reach out to us via email. We appreciate your trust and support!
