Big Lots to close a huge 315 stores in devastating bankruptcy plans

Big Lots has announced it is has filed for bankruptcy and is set to close more stores under new leadership .

The company announced the plans on Monday about the massive changes to the flagging chain of stores. It comes after shoppers were devastated to hear that Big Lots had announced it was closing down stores in 2024 after a tough first quarter.

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The troubled discount retailer initially planning to shutter 35 to 40 locations, then the number rose to 315 in another filing in August. The closures are part of a sale agreement with an affiliate of Nexus Capital Management LP, Big Lots announced in a news release on Monday.

The company initiated Chapter 11 proceedings in the U.S Bankruptcy Court for the District of Delaware. Bruce-Thorn, president and chief executive of Big Lots said in a new release that closing would allow the company to have a 'more focused' footprint.

Back in July Big Lots pinpointed approximately 135 stores across more than two dozen states for closure . It came after the company's first quarter of 2024 was marked by falling revenues and rising long-term debt, sparking worries about its viability.

The challenges encountered by Big Lots mirror wider issues in the retail sector in the aftermath of COVID-19. Walgreens is closing hundreds of stores . Rite Aid is set to close 30 more stores in two states .

The majority of closures are in California , with 54 stores closing their doors, including outlets in Sacramento, Anaheim, and Bakersfield.

Stores in Chicago , Colorado, Long Island , and Oregon were also earmarked for closure, offering discounts of up to 20% off on remaining stock.

In addition, Big Lots recently took over Hearthsong, introducing over 500 new toy products at discounted rates of 50% to 70% off.

The company is striving to boost its off-price sourcing under new management and restore its reputation for bargains despite recent financial hurdles.

Nexstar has identified stores across 27 states with closure notices posted on their websites.