Big Lots has 'substantial doubts' about its future, files for bankruptcy

Big Lots, the struggling discount retailer that previously expressed "substantial doubt" about its future, has filed for bankruptcy.

As part of its Chapter 11 proceedings, private equity firm Nexus Capital Management will acquire “substantially all” of Big Lots' stores and business operations. Throughout the bankruptcy process, the company’s stores and website will continue operating as usual.

“These actions will allow us to move forward with new ownership that believes in our business and provides financial stability. We will optimize our operations, improve performance, and fulfill our commitment to being the leader in extreme value,” said Big Lots CEO Bruce Thorn in a statement.

Big Lots cited various economic challenges, including high inflation and interest rates, as key reasons for its bankruptcy. These factors have shifted consumer behavior, with shoppers seeking value but not necessarily lower prices. This shift has impacted dollar stores, while giants like Walmart and Amazon have thrived. Similarly, chains like McDonald’s have struggled as casual dining restaurants such as Applebee’s have seen growth.

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