A top US retailer has gone bankrupt. At first it was unsure if the retailer would file for bankruptcy. The decision would impact 1400 stores nationwide. However, yesterday it was revealed the company has filed for Chapter 11 bankruptcy on September 9, 2024, in Delaware's U.S. Bankruptcy Court.
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The company, Big Lots!, has however entered a sale agreement with Nexus Capital Management, which plans to acquire all of Big Lots!' assets and operations.
Big Lots! has faced challenges from inflation and high-interest rates, which impacted its core customer base, reducing discretionary spending.
Big Lots! has secured $707.5 million in financing to support operations during the sale process, including closing additional stores and optimising distribution centres. Nexus Capital's Managing Director, Evan Glucoft, expressed optimism about revitalising Big Lots! as a leading extreme value retailer.
Despite challenges, the company believes the sale is the best option to maximise value and continue operations.
Source: www.furnituretoday.com