Columbus-based retailer files for bankruptcy after losing $700 million in two years

Some of us probably saw the signs – after closing 150 stores recently, then closing the distribution center and laying off hundreds of employees, a Columbus-based retail chain officially announced they’re filing for Chapter 11 bankruptcy protection.

“Specifically, Big Lots has entered into an agreement to be acquired by Nexus Capital Management LP. Operating under new ownership who believes in our business and provides increased financial stability will improve our long-term profitability. To facilitate the transaction, we initiated voluntary Chapter 11 proceedings, which will make the proposed transaction subject to higher or otherwise better offers, as well as Court approval,” said Big Lots in a press release.

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Big Lots announced that they’ve been adversely affected by recent macroeconomic factors, “such as high inflation and interest rates that are beyond its control. The prevailing economic trends have been particularly challenging to Big Lots, as its core customers curbed their discretionary spending on the home and seasonal product categories that represent a significant portion of the Company’s revenue.” They’ve lost over $700 million in just two years.

Under the terms of the Sale Agreement, Nexus will serve as the “stalking horse bidder” in a court supervised auction process. If Nexus is deemed the winning bidder, the parties anticipate closing the transaction during the fourth quarter of 2024.

The stores that made it through their mass closures during the summer will continue to “operate as usual,” said Big Lots.

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