Big Lots Is Going Out of Business: Everything You Need to Know
After a challenging 2024 marked by store closures and failed sale attempts, discount retail chain Big Lots has announced that it plans to close all its stores and wind down operations. Here’s a comprehensive look at Big Lots’s closure and what it means for customers, employees, and investors.
Why Is Big Lots Closing?
Big Lots, a discount retailer founded in 1967, has faced severe financial difficulties throughout 2024. Rising inflation and a decrease in discretionary spending hit the company hard, drastically reducing profits. These challenges forced Big Lots to close multiple stores during the summer and file for Chapter 11 bankruptcy protection in September.
The company had been negotiating a potential sale to investment firm Nexus Capital Management. However, these talks collapsed after an inventory valuation reportedly fell short of expectations, making the deal economically unfeasible for Nexus.
On Thursday, Big Lots announced its decision to initiate going-out-of-business (GOB) sales across all remaining stores unless a last-minute buyer emerges to save the company.
Is There Any Hope for Big Lots?
While the outlook appears grim, there is still a small chance for salvation. Big Lots CEO Bruce Thorn has expressed hope for completing an “alternative going concern transaction.” This means that the company could potentially sell itself to Nexus or another interested party.
Big Lots is aiming to finalize any such deal by early January 2025. However, the company is not waiting to begin the GOB sales process to “protect the value of its estate.”
When Will Big Lots Begin Its Going-Out-of-Business Sales?
Big Lots has approximately 870 remaining locations, and the company has confirmed that going-out-of-business sales will commence “in the coming days.” These sales will allow the company to liquidate its inventory and generate revenue while awaiting a potential buyer.
- Exclusive: How to US Trade Impact on Economy in 2025: Need To Know a Comprehensive Analysis
- Exclusive: Record Amount of Sea-Effect Snow Piled High in Hokkaido, Japan, and More Is on the Way
- Reasons How To Make Artificial Intelligence (AI) Tools Are Revolutionzing Technology In 2025: A Complete Guide
What Does This Mean for Big Lots Employees?
The closure of Big Lots stores is expected to have a devastating impact on its workforce. The company employs roughly 27,000 people, most of whom will likely lose their jobs once the stores shut down.
Big Lots has yet to release an official statement addressing the fate of its employees. However, the commencement of GOB sales signals that layoffs are imminent.
Big Lots Stock Price Plummets in 2024
Big Lots’s stock has been on a downward spiral throughout 2024. Previously traded on the New York Stock Exchange under the ticker “BIG,” the stock was delisted and now trades on the over-the-counter market under the ticker “BIGGQ.”
As of the most recent market close, BIGGQ shares were valued at just 8 cents, marking a year-to-date decline of nearly 99%.
A Brief History of Big Lots
Big Lots was founded in 1967 in Columbus, Ohio, under the name Consolidated International, Inc. In 2001, the company rebranded as Big Lots, a name that became synonymous with value shopping. Despite celebrating its 57th anniversary this year, the company now faces the end of its storied legacy.
What’s Next for Big Lots?
If no buyer emerges by early 2025, Big Lots will permanently close all of its stores and liquidate its remaining assets. Customers can expect significant discounts during the GOB sales, but the closure marks a sad chapter for a once-thriving retailer.
- How to make Chinese Chicken Dumpling: A Delicious Homemade Recipe
- Exclusive: How to US Trade Impact on Economy in 2025: Need To Know a Comprehensive Analysis
- Remarkable Legal Victory: What Happened as UK Home Office Pays Nearly £100,000 for Human Rights Breach Need to Know
- Exclusive: UK Economy Faces Higher Inflation and Slower Growth, You Need to Know Bank of England Predicts
- Exclusive: Record Amount of Sea-Effect Snow Piled High in Hokkaido, Japan, and More Is on the Way
- Breakthrough the Eye-Opening Israel-Palestine Conflict: A Comprehensive Overview
