Discounts have increased at the ten Big Lots stores closing their doors in New York as the discount retail chain announced its bankruptcy filing Monday.
The Ohio-based company also plans to close more stores under new leadership, USA TODAY reported Monday , and 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.
In July, Big Lots announced its plans to close 35 to 40 stores in a Securities and Exchange Commission filing, then the number rose to 315 in another filing in August.
Here's what to know.
Why is Big Lots filing for bankruptcy?
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.
"Though the majority of our store locations are profitable, we intend to move forward with a more focused footprint to ensure that we operate efficiently and are best positioned to serve our customers,” Thorn said in the news release. “To accomplish this, we intend to use the tools afforded by this process to continue optimizing our store fleet in an orderly manner."
Big Lots said in the news release it has focused on improving sales and profitability since the COVID-19 pandemic. Referring to factors such as high inflation and interest rates, the company said it has been hit by circumstances that are “beyond its control," like inflation and high interest rates, and have made it difficult for the company to carry on business as usual.
The company’s customer base has been more cautious about spending money on home and seasonal products that make up a large portion of the company’s revenue, the discount store said.
“While the company's underlying performance has been improving, the Board of Directors conducted a broad strategic review of alternatives and determined that entering into the Sale Agreement with Nexus, and initiating a court-supervised sale process, is the best path forward to maximize value and ensure continued operations,” Big Lots wrote in the release.
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What happens after a bankruptcy filing?
A bankruptcy does not necessarily mean a company is doomed.
“A Chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time,” according to the U.S. courts website .
“Some companies don’t survive the Chapter 11 process, but many others, including household names such as Marvel Entertainment and General Motors, successfully emerge and thrive,” CFO Magazine added in a 2020 article.
Earlier this year, fashion retailer Express was able to emerge from bankruptcy with its stores intact, as was Joann fabrics and crafts, Rite Aid and Red Lobster.
“Restructuring is only part of the answer,” said Saunders, the retail analyst. “Many of the remedies require a retooling of the proposition and a much better focus on the customer. Big Lots operates in a very crowded and competitive market where other value players do a far better job of delivering on low prices and compelling bargains.”
Can I still shop at Big Lots?
Yes, you can. The website and store locations will remain open for shopping during and after the process, according to Big Lots' Monday news release.
Discount retailer closing NY locations: See NY Big Lots store closures
Big Lots stores closing in New York
The company's website lists 64 Big Lots locations in New York. The following 10 New York locations had a banner on the website indicating the location would close and shoppers could receive between up to 30-40% off, up from 20%, as of Sept. 9:
- Buffalo - Linden Corners: 2276 Delaware Ave. in Buffalo
- Buffalo - Sloan: 698 S Ogden St. in Buffalo
- Canandaigua: 4406 State Route 5 & 20 Ste 129 in Canandaigua
- Carle Place: 260 Voice Rd. in Carle Place, Long Island
- Centereach: 231 Centereach Mall in Centereach, Long Island
- Ithaca: 2309 N Triphammer Rd in Ithaca
- New Hartford: 4645 Commercial Dr. in New Hartford, near Utica
- Plattsburgh: 316 Cornelia St. in Plattsburgh
- Poughkeepsie: 43 Burnett Blvd. in Poughkeepsie
- Queensbury: 751 Upper Glen St. Ste 2 in Queensbury, north of Albany
Emily Barnes is the New York State Team consumer advocate reporter for the USA TODAY Network. Follow her on Twitter and Instagram @byemilybarnes . Get in touch at ebarnes@gannett.com .
This article originally appeared on Rochester Democrat and Chronicle: Closing Big Lots stores offering steep discounts following bankruptcy filing
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