• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Big Lots files for bankruptcy protection as it promises to keep offering ‘extreme bargains’
Editor's Pick

Big Lots files for bankruptcy protection as it promises to keep offering ‘extreme bargains’

by September 10, 2024
by September 10, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Discount home goods retailer Big Lots filed for bankruptcy protection on Monday after high interest rates and a sluggish housing market slowed demand for its low-priced furniture and decor. 

As part of its Chapter 11 filing, Big Lots agreed to sell its business to private equity firm Nexus Capital Management for about $760 million, consisting of $2.5 million in cash plus its remaining debt and liabilities, court records show. 

The company, which runs more than 1,300 stores across 48 states, is one of the country’s largest closeout retailers and specializes in offering bargain-basement pricing on all things home. It brought in about $4.7 billion in revenue in fiscal 2023, but sales have consistently fallen after pandemic-era demand for home furnishings dropped.

In a press release and court filings, Big Lots said it will operate its business normally but has started the process of closing nearly 300 stores so it can fix its balance sheet and reduce costs.

“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,” CEO Bruce Thorn said in a news release. “As we move through this process, we remain committed to offering extreme bargains, enabling easy shopping in our stores and online, and providing an outstanding customer experience.” 

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

“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,” said Glucoft. 

Big Lots has been teetering near the edge for months after high interest rates and a sluggish housing market slowed consumer demand for new furniture, decor and other home supplies. While discount retailers tend to do well in rough economic cycles, Big Lots primarily caters to lower- and middle-income consumers, who have curbed discretionary spending at a higher rate than their more affluent counterparts. 

“The company has been adversely affected by recent macroeconomic factors such as high inflation and interest rates that are beyond its control,” Big Lots said in a news release. “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.” 

Beyond macroeconomic conditions, Big Lots also operates in a highly competitive space and has struggled to differentiate itself from other discounters that offer home goods or specialize in the category, such as Wayfair, Walmart and TJX Cos.′ Home Goods.

“Big Lots is not always good value for money. Many of the items it sells are not high end and are not drastically expensive, but equivalents can often be found much cheaper at other stores, including Walmart,” Neil Saunders, managing director of GlobalData, said in a note.

“The other issue [is] the assortment is very jumbled and muddled, which is partly a function of the way the business operates,” Saunders added. “However, there is far too much choice and not nearly enough treasure for consumers to be enticed by. This creates an unsatisfactory shopping experience, especially compared to other players operating in the discount space, such as off-price retailers.”

As part of the bankruptcy process, Big Lots will hold a court-supervised auction for its business. It could go to a different buyer if they make a bid that’s higher than Nexus’ offer. 

It’s working with law firm Davis Polk & Wardwell, investment bank Guggenheim Securities and advisory firm AlixPartners. A&G Real Estate Partners has been tapped as Big Lots’ real estate advisor, while Nexus will be represented by law firm Kirkland & Ellis.

This post appeared first on NBC NEWS
You Might Also Like
  • Macy’s confirms rogue employee hid $151 million in expenses over three years
  • Fox could likely survive a nine-figure loss to Dominion, media analysts say
  • DOJ seizes record $225 million in crypto tied to global ‘pig butchering’ scams
  • Surging grocery prices have settled down, but shoppers are still adjusting
Share
0
FacebookTwitterPinterestWhatsapp

previous post
The fight for the future of the Murdoch media empire is about to begin
next post
Back on the trail: Top Biden surrogate Newsom now campaigning for Harris

You may also like

Job growth totals 253,000 in April, beating expectations even as...

May 8, 2023

Bitcoin approaches new all-time high after surpassing $65,000

March 5, 2024

Lawmakers push to revive low-income broadband subsidy as providers pivot

September 11, 2024

Quectel Continues to Drive Digital Transformation With Advanced Smart Module,...

January 6, 2023

Relentless heat wave has people cranking up their air conditioners...

July 24, 2023

Why the Fed’s keeping rates higher for longer may not...

April 25, 2024

Google employees pressure costumed execs at all-hands meeting for clarity...

November 1, 2024

Are consumers pulling back on spending? It depends which CEO...

May 21, 2024

Boeing investigates quality problem on undelivered 787s, sources say

June 17, 2024

Three Mile Island nuclear plant to help power Microsoft’s data-center...

September 20, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters renovation

      July 10, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 10, 2025
    • OpenAI to release web browser in challenge to Google Chrome

      July 10, 2025
    • Sports executive charged with bid-rigging in Texas arena project

      July 10, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,631 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,919 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,607 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,577 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,451 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,171)
    • Investing (538)
    • Stock (2,662)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters...

      July 10, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 10, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,171)
    • Investing (538)
    • Stock (2,662)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Russian oligarch’s yacht is costing U.S....

    March 7, 2024

    The Body Shop shuts down U.S....

    March 12, 2024

    Square outage costs small-business owners thousands...

    September 9, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here