Big Lots, the discount retail chain based in Central Ohio, has declared bankruptcy as of September 9, 2024, entering voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware. The company has been sold to Nexus Capital Management and plans to close several locations as part of its restructuring efforts. CEO Bruce Thorn cited ongoing macroeconomic challenges and a significant 10.2% drop in sales as key factors leading to this decision [6fc96497].
This announcement follows Big Lots' earlier plans to close over 3,000 stores nationwide, including 10 locations in New York State, due to the adverse effects of inflation and a pullback in consumer spending. The company had already reported a loss of $114 million in net sales in the first quarters of 2023 and 2024, accumulating a total debt of $573.8 billion [f4230163] [28e7da19].
In 2023, Big Lots had already closed 52 stores and announced plans for an additional 35 to 40 closures in 2024. The closures are primarily targeting underperforming locations as the company grapples with a shift in consumer behavior, where 42% of shoppers are now adopting a 'budget shopper' persona due to rising inflation and economic uncertainty [6fc96497].
The chain operates over 1,300 stores across 48 states, offering a wide range of discounted products, including furniture, kitchenware, groceries, and personal care items. Despite the closures, Big Lots remains committed to serving its customers through its remaining stores [54bd5033].
The retail landscape is also seeing similar trends, with other discount retailers such as Bob's Stores and 99 Cents Only announcing closures as they face the same economic pressures. The overall decline in consumer spending has prompted many retailers to reevaluate their operations and store footprints [6fc96497].
As Big Lots navigates this challenging period, it is crucial for the company to adapt to the changing market dynamics and consumer preferences to ensure its survival in the competitive retail environment [96881d38].