More Big Lots closures are on the way.
On Monday, the discount retailer announced it plans to close more stores under new leadership, an affiliate of Nexus Capital Management LP. Back in July, Big Lots had announced it would close 35-40 stores — including three in Tennessee — however, that number rose to 315 in August.
The Ohio-based retailer has also initiated Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware, said a news release.
In a statement, President and Chief Executive Officer, Bruce Thorn, said that undergoing new leadership will not only provide financial stability but also “optimize their operational footprint,” “accelerate improvement in performance” and “deliver on their promise to be the leader in extreme value.”
“We are excited to have the opportunity to partner with Big Lots and help return this iconic brand to its status as America’s leading extreme value retailer,” said Evan Glucoft, managing director of Nexus. ” The Big Lots business has incredible potential and we are confident that its greatest days are ahead.”
In addition to closing more stores, the company also plans to “elevate and optimize” its distribution center model. At this time, it is unclear if additional stores will be closed in Tennessee. At the time of publication, a Big Lots spokesperson did not respond to the Tennessean’s request for comment.
Why is Big Lots closing stores?
Like many retailers, factors like high inflation and interest rates have impacted Big Lots stores. Furthermore, economic trends like customer spending on home and seasonal products, have affected the company’s revenue, said a news release from the company.
The company had previously reported that sales in the first quarter of 2024, which ended in May, fell more than 10% compared to the previous year. The company did, however, perform better in the second quarter, yielding improved comp sales. The retailer also reported that quarter three is off to a good start and positive momentum should continue throughout the remainder of the year.
“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,” wrote Big Lots in the release.
Big Lots secures over $700 million in financing
Big Lots added on Monday that Nexus will act as a “stalking horse bidder” in an auction the courts will oversee. Companies that want to place higher bids can participate but should Nexus be the winner, the sale should be final by the fourth quarter of 2024.
Big Lots also reported $707.5 million of financing, including $35 million from some of its current lenders.
Regarding its current operations, Big Lots has filed motions seeking court approval to continue paying employees and benefits, and payments to certain critical vendors in the ordinary course of business.
Which Big Lots stores in Tennessee are closing?
As previously reported by USA TODAY, the stores closing in Tennessee include two stores outside Nashville and one in northwest Tennessee. They are:
How many Big Lots are there in Tennessee?
There are a total of 47, soon to be 44, Big Lots stores across Tennessee. Locations include Chattanooga, Clarksville, Memphis, Knoxville and more. A complete list of Big Lots stores can be found at local.biglots.com/tn.
Jordan Green and USA TODAY contributed to this report.
Diana Leyva covers trending news and service journalism for The Tennessean. Contact her at Dleyva@gannett.com or follow her on X, the platform formerly known as Twitter, at @_leyvadiana
This article originally appeared on Nashville Tennessean: Big Lots announces bankruptcy. Why and how it affects Tennessee stores
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Publish date : 2024-09-09 09:37:00
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