Big Lots Files for Chapter 11 Bankruptcy, Plans Sale to Nexus Capital Amid Store Closures
Big Lots has officially filed for Chapter 11 bankruptcy as it struggles with the impacts of high inflation and decreased consumer spending. The Ohio-based discount retailer, which operates nearly 1,400 stores across the U.S., plans to sell its assets and ongoing business operations to Nexus Capital Management. This sale will be facilitated through a court-supervised process, with Nexus serving as the “stalking horse bidder”—setting the minimum bid for potential buyers.
Despite the bankruptcy filing, Big Lots plans to keep most of its stores and online operations open during the restructuring. However, it has already begun closing about 300 underperforming locations and is expected to assess further store closures as part of its operational downsizing. The retailer cited macroeconomic challenges, including rising interest rates and shifting consumer habits, as key reasons for its financial instability. With $707.5 million in financing secured to support ongoing operations, Big Lots is hoping this move will help stabilize the business and allow it to optimize its footprint moving forward.
