California, USA –
Filing for Chapter 11 bankruptcy will allow Big Lots to reorganize its debts and keep running, as revealed on September 9.
The news comes as 315 stores around the country, including 74 in California, prepare to close their doors.
“We are taking action today to secure new owners who believe in our business and can provide financial stability. Our goal is to streamline our operations, improve our performance faster, and fulfill our promise to be the leader in extreme value,” stated Bruce Thorn, president and CEO of Big Lots.
Funding Totaling $707.5 million-
Big Lots and Nexus Capital Management have reached a deal to sell almost all of Big Lots’ assets and company activities.
The bargain retailer raised $707.5 million, including $35 million in additional funding, as part of the Chapter 11 court-supervised procedure.
Big Lots will keep serving clients at their local stores or online both throughout and after this procedure.
Interest Rates and Inflation that are too high
High inflation and borrowing rates have hurt Big Lots and many other retail firms, according to the company.
Hard Times Hit! National Clothing Chain Files for Bankruptcy, Shuts Down All Locations
The news release states that Big Lots has been hit hard by the current economic trends. It says that the company’s core consumers have cut back on spending on home and seasonal products, which make up a big chunk of their business.
Further store closures may be in the future as the bargain retailer evaluates its business footprint.
At Big Lots’ current Halloween closeout sale, you can get hundreds of brand-new goods for 50% to 70% off the MSRP.
