Another Big major retail chain may soon file Chapter 11 bankruptcy
According to THE SUN, Big Lots has officially filed for Chapter 11 bankruptcy as of Monday, prompting the closure of 295 store locations in the coming months. The move is part of the company’s strategy to “optimize our store footprint,” according to President and CEO Bruce Thorn. Thorn indicated that additional closures could follow next year as the company aims to operate more efficiently and better serve its customers.
Shoppers Express Displeasure
The bankruptcy news has sparked a wave of reactions from Big Lots shoppers. Many have taken to social media to express their dismay. One customer lamented, “Big Lots used to be the spot,” while another wrote, “An absolute crying shame. I hope and pray that they do not go completely under.” A third shopper expressed frustration, saying, “Another store bites the dust.”
Sale Agreement and Future Prospects
Following the bankruptcy filing, Big Lots has entered a sale agreement with Nexus Capital Management LP, known as a “Stalking Horse Bid.” Nexus Managing Director Evan Gluoft expressed optimism about revitalizing the brand, stating, “We are excited to have the opportunity to partner with Big Lots and help return this iconic brand to its status as America’s leading extreme value retailer.” The deadline for other potential bids is October 15. If no higher offers are received, Nexus’ bid will likely be accepted.
Mixed Reactions from Customers
Customer reactions to the bankruptcy news have been varied. Some expressed shock and disappointment, with comments such as, “Oh no I hope not I like Big Lots.” Others were less surprised or indifferent, with remarks like, “I thought they been bankrupt for years now lol,” and “They’re still in business? Thought they were gone long ago.”
Financial Struggles and Future Commitments
Big Lots has struggled financially in recent years, impacted by the aftermath of the pandemic, high inflation, and rising interest rates. Despite these challenges, Thorn emphasized the company’s commitment to delivering extreme bargains and an outstanding customer experience as they navigate through this difficult period.
