Big Lots reveals closing plans for 5 locations in same state as bankrupt chain continues eliminating hundreds of stores
BIG LOTS has confirmed the closures of at least five more locations in the same state.
The retailer notably went bankrupt in September after continued financial struggles.
It later reached a sale agreement with Nexus Capital Management, with plans for a “more focused” retail footprint, according to an announcement from Bruce Thorn, Big Lots’ president.
“To accomplish this, we intend to use the tools afforded by this [bankruptcy] process to continue optimizing our store fleet in an orderly manner,” Thorn noted during the Chapter 11 filing.
For customers, that meant an estimate of around 545 Big Lots stores being axed from its 1,389 count across 48 states.
Alaska and Hawaii are the only states without a Big Lots store.
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About 295 locations will shut down before the end of the year in the move from the company.
An additional 250 stores are slated to close by January 15, 2025.
Big Lots in many states are either in the process of shuttering or have already closed down for good.
In October, Big Lots confirmed that 56 stores would shut down by the end of the month across 25 states.
LOSS IN LOUISIANA
Some states will also lose more than others.
Louisiana customers, for example, will see five of their 15 Big Lots stores close soon, per the Shreveport Times.
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While the final days of operation at the five locations haven’t been confirmed, liquidation sales are going on right now.
They range from 20% to as high as 50%, depending on the store.
The five Louisiana Big Lots closings are in Baton Rouge, Chalmette, Hammond, Marrero, and Shreveport.
Locations in Covington, Gonzales, Houma, La Place, Lake Charles, Slidell, Thibodaux, Metairie, and West Monroe will remain open.
Louisiana Big Lots Closures
At least five Big Lots locations will be closing across Louisiana in the coming weeks. Liquidation sales as high as 50% off on select merchandise are going on right now.
- 6900 Siegen Lane, Baton Rouge — 20% off
- 8700 West Judge Perez Drive, Chalmette — 25% off
- 1709 West Thomas Street, Hammond — 30% to 50% off
- 5005 Lapalco Boulevard, Marrero — 20% off
- 1293 Shreveport Barksdale Highway — 30% off
It’s likely that the Louisiana locations were deemed as not meeting performance expectations, as Thorn emphasized the need to “aggressively address underperforming stores” after the sale agreement with Nexus Capital Management.
Big Lots sales performance had dipped considerably over the past few years, citing a $114.5 million decrease in the first quarter of 2023.
Still, Big Lots isn’t alone in what has seemingly been a retail bloodbath in 2024.
GONE FOR GOOD
There’s been at least a 24% increase in store closures this year alone, per data collected by CoreSight.
Several have also filed for bankruptcy to re-organize and relieve debt struggles.
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LL Flooring, for example, filed in August and confirmed it would revert to its previous name and axe around half of its retail footprint.
Clothing retailers like Express and Rue 21 also submitted Chapter 11 filings earlier this spring with mass closures nationwide.
How does bankruptcy work?
Bankruptcy is a specific legal process that helps companies eliminate debt they can’t repay.
The process allows businesses to start fresh and gain access to new credit.
Supervised by federal courts, bankruptcies allow a company to sell off its assets more easily to pay off creditors, according to Investopedia.
Chapter 11, a common process for companies, is used to restructure a business with the goal of remaining open – even if it means selling off most of the company’s properties.
Chapter 7, on the other hand, sells all of a company’s assets, putting it out of business.
Chapter 15, alternatively, allows for collaboration between American and foreign courts to conduct bankruptcy proceedings with “parties of interest involving more than one country,” per the United States Courts.