Big Lots files for bankruptcy, makes a promise to all shoppers

Retail stores are not having the same luck at thriving as they once did. After the pandemic, prices on goods and labor and a shortage of money from consumers have been a few key factors that have led brick-and-mortar stores down a dark path.

Big Lots has been under the gun as well, closing 300 stores as of late. That still left them with more than 1,000 locations in America, but with financial issues getting in the way of the company pressing forward.

Big Lots Files for Bankruptcy, But Makes a Promise to All Shoppers

On Monday (Sept. 9) Big Lots made it official and did what everyone was wondering if it was going to have to do or not. Big Lots has officially filed for Chapter 11 bankruptcy protection.

But wait, there's more. With the approval of the Chapter 11 bankruptcy,  Big Lots also agreed to sell the entire company and all of its stores to a private equity firm called Nexus Capital Management.

The sale has some interesting numbers in it. The private equity firm paid roughly $760 million — consisting of only $2.5 million in cash, though.

Wait, a Company Paid Only $2.5 Million Cash Up-Front for All of Big Lots?

Not exactly. Nexus Capital Management will also have to take on all of Big Lots' debt and liabilities. They will kind of be starting from underground, for lack of a better term.

Evan Glucoft, who is the managing director at Nexus, said the firm is "confident" that Big Lots’ "greatest days are ahead."

Glucoft continued, "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."

Big Lots stores and their contents are going to enter into a court-supervised auction to give any other company the chance to outbid Nexus Capital, but it sounds as if Nexus is in it to win it, and wants this to happen.

The current CEO of Big Lots, Bruce Thorn, made a promise to all Big Lots customers and fans across America.

"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."

Big Lots wants it to be known that it will emerge from bankruptcy with more than 1,000 stores and a new owner that is willing to make Big Lots what it once was, before all of the economic troubles.