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Big Lots intends to permanently close the doors of more than 50 stores.
The discount retailer disclosed its intentions to close 56 more locations in a Friday filing with the bankruptcy court that is overseeing the Chapter 11 proceedings.
The new stores slated for closure are located in several states, including California, Texas, Nebraska, New Mexico, Ohio, Pennsylvania, Michigan, Georgia, Tennessee, Illinois, Arkansas, Alabama, Connecticut, Virginia, Indiana, Iowa, Colorado, Missouri, Washington, Arizona, Maryland, Kansas, Louisiana, Florida, Oklahoma, Wisconsin and North Carolina.
Discount home goods retailer, Big Lots Inc. is preparing to file for bankruptcy as soon as Sunday, and plans to sell its chain of stores in a court-supervised process, according to people familiar with the plans. (Eric Thayer/Bloomberg via Getty Images/Getty Images)
Relevant parties have until Wednesday afternoon to object to the planned shutdown, according to the notice.
LARGE NUMBER OF FILES TO BE COVERED, WILL CLOSE SOME SHOPS AMIDST SALES TO THE INVESTMENT COMPANY
These locations will add to the many stores the discount retailer has already closed this year.
Big Lots filed for Chapter 11 bankruptcy early last month to facilitate the sale of “all” of its assets to “horse bidder” Nexus Capital Management.
Big Lots disclosed its intentions to close 56 more locations in a filing Friday with the bankruptcy court that is overseeing the Chapter 11 proceedings. (Justin Sullivan/Getty Images/Getty Images)
In early September, the discount retailer said its board had concluded “entering into a sale agreement with Nexus, and beginning a court-supervised sale process, is the best way forward to maximize value and ensure continued operations.” Nexus must be the winning bidder in the court-supervised auction for the transaction to close.
Big Lots also said at the time that the Chapter 11 proceeding would involve closing many of its locations.
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“While the majority of our stores are profitable, we intend to move forward with a greater focus on ensuring we are efficient and in the best position to serve our customers,” said CEO Bruce Thorn. “To achieve this, we intend to use the tools provided by this process to continue to improve our shop vehicles in a systematic way.”
Prior to its Chapter 11 filing, reports had suggested that a bankruptcy filing from Big Lots was imminent.
Prior to its Chapter 11 filing, reports suggested that a bankruptcy filing from Big Lots was imminent. (Howard Schnapp/Newsday RM via Getty Images/Getty Images)
The discount retailer is known for selling home furnishings, furniture, seasonal decorations and other products.
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In the second quarter, Big Lots generated 1.05 billion dollars in net sales, a decrease of more than 8% compared to the same period of three months last year. Its net loss for the quarter was about $238.46 million.
Pilar Arias contributed to this report.
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