Big Lots is the latest retailer to buckle under the pressures of increasing inflation and high interest rates.
The struggling discount retailer, which previously expressed "substantial doubt" about its future, has filed for bankruptcy.
As part of its Chapter 11 proceedings, private equity firm Nexus Capital Management will acquire "substantially all" of Big Lots' stores and business operations.
Big Lots' says its stores and website will continue operating as usual throughout the bankruptcy process. The company will still accept gift cards and store credit cards, and customers will still be able to earn and redeem rewards, NPR reported.
The bankruptcy filing comes one month after Big Lots said it would close as many as 315 stores across the country, CBS News reported.
"These actions will allow us to move forward with new ownership that believes in our business and provides financial stability. We will optimize our operations, improve performance, and fulfill our commitment to being the leader in extreme value," CEO Bruce Thorn said in a statement.
As part of the court-supervised sale process, additional store locations will be closing.
"Though the majority of our store locations are profitable, we intend to move forward with a more focused footprint," Thorn said. Specific details about stores slated for closure were not provided.
Big Lots cited various economic challenges, including high inflation and interest rates, as key reasons for its bankruptcy. These factors have shifted consumer behavior, with shoppers seeking value but not necessarily lower prices.
The shift has impacted dollar stores, while giants like Walmart and Amazon have thrived. Similarly, chains like McDonald’s have struggled as casual dining restaurants such as Applebee’s have seen growth.
Big Lots currently operates more than 1,300 stores across 48 states.