Big Lots entering Chapter 11 bankruptcy, announces sale

COLUMBUS, Ohio, (WBOY) — Closeout retail chain Big Lots Monday announced that it initiated voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware as part of a sale agreement with Nexus Capital Management.

Nexus will acquire “substantially all” of Big Lots’ assets and ongoing business operations as part of the deal, the chain announced in a press release.

When undergoing Chapter 11 bankruptcy , companies are able to continue to operate their businesses and a plan of reorganization is proposed, which the company’s creditors and the bankruptcy court are able to vote on and confirm.

Big Lots said it would continue to serve its customers during and after the Chapter 11 bankruptcy process, but will close additional store locations.

North central West Virginia currently has Big Lots locations in Morgantown, Fairmont, Clarksburg and Elkins. As of Monday, a Nexstar analysis continued to show that there are no stores currently set to close in West Virginia .

This comes after the company announced back in July that it would be closing dozens of stores , citing inflation and its inability to compete under economic pressures.

“Like many other retail businesses, the Company has been adversely affected by recent macroeconomic factors such as high inflation and interest rates that are beyond its control,” the release said. “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.”

If Nexus is deemed the winning bidder of Big Lots, the sale is expected to close during the fourth quarter of 2024, the release said.

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