NEW YORK (AP) — Discount chain Big Lots is conducting a clearance sale at its remaining locations after a sale of the company failed to materialize.
The Columbus, Ohio-based retailer, which sells furniture, home decor and other items, filed for Chapter 11 bankruptcy protection in early September and said private equity firm Nexus Capital Management LP had agreed to acquire “substantially all of the company’s assets.” to take. But on Thursday the chain said it did not expect the purchase agreement to be completed. It said it continues to work toward completing an alternative transaction with Nexus or another party.
Big Lots said its goal would be to complete a sale in early January. According to the company’s website, discounts of up to 50% were offered on the entire range and it was announced that all stores were closing.
“We all worked extremely hard and took every step to complete a sale on good terms,” said Bruce Thorn, president and CEO of Big Lots, in a statement. “While we remain hopeful that we can complete an alternative going concern transaction, in order to protect the value of the Big Lots estate, we have made the difficult decision to initiate the GOB process.”
Big Lots said it will continue to serve customers in-store and online and will provide updates as they become available.
Big Lots has said high inflation and interest rates have hurt its business as consumers have pulled back on their home and seasonal product purchases, two categories the chain depends on for a significant portion of its sales. The company has also faced increasing competition from companies like Walmart and warehouse clubs like Walmart’s Sam’s Clubs and Costco, all of which have tightened their prices and merchandise.
By the end of 2023, Big Lots operated nearly 1,400 stores in 48 states. A more recent store count was not immediately available.
