Big Lots files for bankruptcy, will close some stores amid sale to investment firm

Published On Sep 9, 2024, 3:37 AM

Big Lots has filed for Chapter 11 bankruptcy and plans to sell its business to Nexus Capital, which is providing $707.5 million to support its operations through this transition. The company identified significant losses attributed to increased competition, declining consumer spending on home and seasonal products, and adverse economic conditions like inflation and high interest rates. Store closures are expected as part of this restructuring effort. Nexus Capital will act as a 'stalking horse bidder' in the bankruptcy auction, which is designed to garner higher bids from other potential buyers if they are interested.