The chain is launching going out of business sales
of ConsumerAffairsBig Lots, Inc., a discount retailer, has announced a significant shift in its strategic plans as it no longer expects to finalize its previously announced asset purchase agreement with Nexus Capital Management.
Despite this setback, the company is actively pursuing an alternative plan while also preparing to wind down operations at its remaining stores.
In a bid to safeguard the value of its estate, Big Lots said it will initiate going out of business (GOB) sales at all its remaining store locations in the coming days. This move, while drastic, is seen as a necessary step to protect the company's assets during this transitional period, the company said. The company remains optimistic that these sales will not hinder the possibility of securing a going concern transaction.
Bruce Thorn, CEO of Big Lots, expressed the company's commitment to finding a viable solution.
"We all have worked extremely hard and have taken every step to complete a going concern sale, said Bruce Thorn, CEO of Big Lots. 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 GOB process."
Struggles with inflation
Like many other discounters other than Walmart Big Lots has struggled as inflation began to take off in 2021. Its core customer base shifted spending from discretionary items to necessities. The company has been losing money each quarter since 2022.
In a July filing with the Securities and Exchange Commission (SEC), Big Lots showed a loss of $205 million for the 13 weeks that ended May 4. The company also said it expects there will be even more operating losses and it cited "substantial doubt" about its ability to continue as a going concern. Its already closed more than 100 of its stores.
Despite the looming closures, Big Lots said it is continuing to serve its customers, both in-store and online.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-12-20 12:23:31
