Columbus, Ohio — Discount retailer Big Lots has declared bankruptcy and will close additional stores across the country as it contends with a shopping slowdown.
The company made the announcement Monday and said it’s selling its assets and business operations to private equity firm Nexus Capital Management. It will also “assess its operational footprint” and likely close more stores. Earlier this year, the discount chain shuttered 300 locations; with the bankruptcy, it plans to add another 250 stores to that list by January.
Customers have curbed spending on home goods and seasonal items at the chain, which has led to fledgling sales and plunging profits, the company noted.
Nexus has stated it plans to keep the stores operational and “return this iconic brand to its status as America’s leading extreme value retailer.”
According to the release:
Bruce Thorn, President and Chief Executive Officer, said, “We are proud of the work we do every day across Big Lots to provide our customers with unmistakable value and exceptional savings, as well as building stronger communities through our philanthropic efforts. The actions we are taking today will enable us to move forward with new owners who believe in our business and provide financial stability, while we optimize our operational footprint, accelerate improvement in our performance, and deliver on our promise to be the leader in extreme value.”