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Discount home goods retailer Big Lots announced today it has filed for Chapter 11, and its stores and operations have been acquired by private equity firm Nexus Capital Management.
“The actions we are taking today will enable us to move forward with new owners who believe in our business and provide financial stability, while we optimize our operational footprint, accelerate improvement in our performance, and deliver on our promise to be the leader in extreme value,” says company president and CEO Bruce Thorn.
The company previously announced its intention to close 300 stores, according to CNN, representing nearly 5% of its total store count. Thorn says as a result of the bankruptcy, the business will be moving forward with a “more focused footprint” and said additional store closures will be coming, but did not specify a number or timeline.
The company points to “recent macroeconomic factors such as high inflation and interest rates” and their core customer base limiting “discretionary spending on the home and seasonal product categories” as factors that led to the decision to file for bankruptcy.
The deal with Nexus is anticipated to close in the fourth quarter.
