“This sale agreement and transfer present the strongest opportunity to preserve jobs, maximize value for the estate and ensure continuity of the BigLots brand,” BigLots President and CEO Bruce Thorn said in a statement. “We are grateful to our associates nationwide for their grit and resilience throughout this process.”
Columbus, Ohio-based BigLots sells furniture, home decor and other items. When it filed for bankruptcy in September, it said inflation and high interest rates caused consumers to pull back on their purchases of home and seasonal products, two categories the chain depends on for a significant part of its revenue.
At the time, Big Lots planned to sell its assets and ongoing business operations to private equity firm Nexus Capital Management
Biglots strikes deal to save some stores from closing, keep brand alive
Big Lots has struck a deal to save some stores from closing and keep the brand name alive.
The discount retail chain announced late Friday that it has agreed to a sale transaction with Gordon Brothers Retail Partners, LLC, to transfer BigLots assets, including stores, distribution centers and intellectual property, to other retailers including Variety Wholesalers, Inc.
Variety Wholesalers said it will acquire between 200 and 400 BigLots stores that will continue to operate under the Big Lots brand, plus up to two distribution centers. Variety also said it may continue to keep Big Lots employees at its acquired properties, as well as some corporate staff.
Biglots to close 35 to 40 stores; warns of ability to survive as ‘going concern’
Big Lots’ troubles are mounting,
In an SEC filing, the Ohio-based discounter revealed it plans to close between 35 to 40 stores in 2024, putting the blame on elevated inflation that has put a damper on customers buying power. Big Lots, which has been working to shore up its liquidity the past few months, also raised doubts about its ability to survive.
In the filing, Big Lots, which has over 1,300 stores nationwide, noted it had net losses and used cash in operating activities in 2022, 2023 as well as the first quarter of 2024. While it currently is in compliance with its credit agreements, the retailer said that it “expects to experience further operating losses and expects to experience difficulty remaining in compliance with such covenants.”
“Based on our current cash and liquidity projections, and uncertainties with respect to the mitigating effect of management’s plans, the company has concluded there is a significant likelihood that it will be unable to comply with the Excess Availability Covenant under the 2022 Credit Agreement and the term loan facility within the next 12 months, which raises substantial doubt about the company’s ability to continue as a going concern,” the company said in the filing.
Gordon Brothers And Variety Wholesalers Step In To Save Some Big Lots Stores
Gordon Brothers Retail Partners has just thrown a lifeline to closeout retailer Big Lots after a previous deal with Nexus Capital Management to acquire the company fell through.
Before Gordon Brothers stepped in, Big Lots announced it was forced to close all 900 stores. Now between 200 and 400 Big Lots stores will live to see another day.
“Good news on the retail jobs front this morning,” Neil Saunders, managing director of GlobalData Retail, posted on LinkedIn. “Big Lots, which filed for bankruptcy in September, has reached an agreement with Gordon Brothers Retail Partners to keep hundreds of stores open and save thousands of jobs.”
Gordon Brothers, which was handling Big Lots’ going-out-of-business sale, has agreed to buy all Big Lots assets, including stores, distribution centers and intellectual property, which it plans to sell along to other retailers and companies.
Biglots weighing possibility of bankruptcy filing as sales dwindle
Big Lots is reportedly weighing the possibility of filing for bankruptcy due to declining sales.
The discount retailer is considering filing for bankruptcy as a potential option, Bloomberg reported late Wednesday, citing people with knowledge of the plans.
A source familiar with the situation told the outlet that Big Lots is trying to dodge Chapter 11 by hunting for investors.
Bloomberg’s report came about two-and-a-half months after the discount retailer flagged “substantial doubt about the Company’s ability to continue” in a mid-June Securities and Exchange Commission filing amid an inflation-related pullback in its shoppers’ spending.
More Biglots stores will close as company files for bankruptcy
Ohio-based discount retailer Big Lots has filed for bankruptcy and plans to close more stores under new leadership, the company announced Monday.
The retailer said in July it planned to close 35 to 40 stores in a Securities and Exchange Commission filing, then the number rose to 315 in another filing in August.
The closures are part of a sale agreement with an affiliate of Nexus Capital Management LP, Big Lots announced in a news release Monday. The company has initiated Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware as well.
Closing more locations will allow the company to have a “more focused footprint” and conduct business efficiently, said Bruce Thorn, president and chief executive of Big Lots, in a news release. The company will also work on its distribution center model.
Biglots will be open Thanksgiving Day with 50% off all toys storewide
COLUMBUS, Ohio, Nov. 3, 2021 /PRNewswire/ — bigLots, Inc. (NYSE: BIG), one of the largest neighborhood discount retailers in the U.S., will be open Thanksgiving Day from 7 a.m. to 9 p.m. at all locations nationwide* with a 50% discount on all toys plus recliners for only $199.99. Continuing with great deals throughout the weekend, Black Friday hours are 6 a.m. to 11 p.m. when BigLots will offer a 42″ Westinghouse Roku TV for $149.99 and 30% off all holiday décor including trees, tree décor, candles and more! In addition, on Black Friday from 6 a.m. to noon, Big Rewards members will receive an extra 15% off their entire purchase and $10 in Big Bucks coupons for every $100 spent which can be used on their next purchase.
“This holiday season, we’re offering the exceptional value we’re known for plus convenient shopping hours,” said Bruce Thorn, president and CEO of BigLots. “We know many of our customers work over the holiday weekend and may appreciate getting an early jump on their holiday shopping on Thanksgiving Day. So, we’re offering some of our best deals on Thanksgiving and continuing with even more amazing deals throughout Black Friday weekend.”
(Bloomberg) — Bankrupt Big Lots Inc. has struck a deal to save hundreds of stores after an earlier sale of the business fell apart, saving the chain from closing down entirely.
FAQs:
1. Does Big Lots offer furniture delivery?
Yes, Big Lots provides furniture delivery services for larger items. Delivery fees and availability may vary depending on location and item.
2. Can I return items purchased from Big Lots?
Big Lots has a return policy allowing most items to be returned within 30 days of purchase with the original receipt. Specific conditions may apply for furniture and online orders
