Big Lots admits another 19 locations will disappear from map as part of latest closures and bankruptcy bloodbath

Big Lots has announced that it will close 19 more shops in nine states after liquidating a large number of its outlets in October.

The wave of closures coincides with the Chapter 11 bankruptcy case and the takeover of the bargain retailer.

Big Lots announced plans to liquidate 19 more stores after eliminating hundreds of sites in recent months.

Since filing for Chapter 11 bankruptcy protection, Big Lots has issued five notices of additional store closures.

The bargain business revealed plans to eliminate more than 340 sites in order to “optimize” its store footprint at the time of the September filing.

The bargain retailer then shut down 50 more locations throughout the United States in October.

Big Lots filed papers in the US Bankruptcy Court to keep paying key vendors and staff in order to keep running its business in spite of the closures.

Nine states are included in the latest round of shuttering, with California, Texas, and Oregon expected to see the most closures.

There will be five Big Lots stores closing in California, three in Oregon and Texas, and more in Arizona, Florida, Georgia, Idaho, Nevada, and Washington.

“Though most of our stores are profitable, and we are taking every step possible to improve the profitability of all our stores, we will need to close certain locations to ensure that our business operates efficiently and we can continue serving our customers,” said the company.

According to a court filing on Monday, stakeholders have until November 23 to protest the inclusion of these establishments.

Big Lots operated more than 1,400 locations across 48 US states as of January 28, 2023.

As of last month, Big Lots had about 1,150 locations left.

BIG CHANGES

A private equity firm called Nexus Capital Management LP is purchasing Big Lots, and the shop closures are a component of the company’s restructuring.

By 2024’s fourth quarter, the deal should be finalized.

$35 million of the $707.5 million in financing included in the transaction comes from some of Big Lots’ existing lenders.

According to court filings, the retailer owes between 5,001 and 10,000 creditors around $3.1 billion.

Additionally, the company’s net revenues fell by $114.5 million during the first quarter of 2023 and 2024.

“In the first quarter of 2024, we experienced decreased comps and net sales in all of our merchandise categories,” the company stated in June.

“Our home products categories, which include Furniture, Seasonal, Soft Home, and Hard Home, continue to be negatively impacted by macroeconomic pressures affecting our customers’ discretionary spending in the first quarter of 2024.”

The retail industry continued to suffer from the pandemichas, as high inflation dampened consumer spending.

For instance, Sears has experienced severe difficulties over the years, which have been made worse by inflation and the pandemic.

As customers announced that the last store in the state will close, supporters of the firm noticed “everything must go” signs on deserted walls.

A well-known furniture chain with more than 300 outlets has also suffered and is planning to close all of its sites.

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