Big Lots faces final curtain as going-out-of-business sales begin

In December 2024, Big Lots, a discount furniture and home decor retailer based in the United States, announced its intention to cease operations at all of its stores. The decision comes after the company's plan to sell its assets to Nexus Capital Management, a private equity firm, collapsed. Initially, Big Lots had approached Nexus for a potential acquisition, aiming to stabilize its financial situation following ongoing operational losses. Big Lots filed for Chapter 11 bankruptcy protection in September 2024 amid significant financial difficulties. The company had previously disclosed plans to close hundreds of locations throughout the United States, building on earlier announcements made in August and October to shut down between 315 and 56 stores across diverse states. As part of the closure strategy, Big Lots will initiate going-out-of-business sales at all remaining locations. Despite ongoing discussions with Nexus to find alternative solutions, the failure to resolve the acquisition deal forced Big Lots to make this difficult decision. The company's CEO, Bruce Thorn, expressed hope that an alternative transaction could potentially save some elements of the business but clarified the need to begin liquidation to preserve what value remains. The context of Big Lots' closure is set against a broader trend impacting the retail sector in the U.S., where numerous retailers are facing similar crises. In 2024, over 7,100 store closures were reported, marking a 69% increase compared to the previous year. As of December 2024, 49 retail bankruptcy filings had occurred, highlighting the challenging economic landscape for brick-and-mortar stores. Big Lots' situation emphasizes the ongoing struggles faced by many retailers as consumer preferences shift and competition intensifies in the discount sector.