National retailer Big Lots, headquartered in Columbus, Ohio, has declared its intention to commence Going Out of Business (GOB) sales across all remaining stores. This announcement follows the company’s inability to finalize an asset purchase agreement with Nexus Capital Management, and its ongoing pursuit of an alternative sale arrangement.
Big Lots had initially embarked on Chapter 11 bankruptcy proceedings in early September, seeking to facilitate the sale of a significant portion of its assets to its initial bidder, Nexus Capital Management. This move was intended to maximize value and maintain company operations, as conveyed by the board at that time.
The company’s President and CEO, Bruce Thorn, expressed the challenges faced in finalizing a going concern sale. Despite efforts, he stated that to preserve the value of Big Lots’ estate, commencing the GOB process had become necessary. Bruce Thorn remarked, ‘We all have worked extremely hard and have taken every step to complete a going concern sale.’
Big Lots’ financial struggles became more apparent in their recent reports. In the second quarter, the retailer reported a net sales figure of $1.05 billion, marking an over 8% decrease compared to the same period in the previous year. The company’s net loss for the quarter approached $238.46 million, highlighting the financial pressures it faces.
Prior to filing for bankruptcy, Big Lots informed the SEC of plans to initially close 35-40 stores, a number that expanded to hundreds as circumstances evolved. In October, another 50 store closures were announced, adding to the uncertainty impacting the company’s 1,400 stores and over 30,000 employees nationwide.
Despite these setbacks, Big Lots remains hopeful for a positive outcome. The company continues to explore alternative sales with Nexus or other potential buyers, aiming for a conclusion by early January. However, if Nexus intends to secure the deal, it must win a court-supervised auction.
Big Lots’ decision to initiate Going Out of Business sales underscores the precarious financial position the retailer finds itself in as it navigates bankruptcy proceedings. While efforts continue to reach a favorable resolution, the impact of ongoing store closures is significant for both employees and customers across the United States.
Source: Fox13news
