Discount home goods retailer Big Lots has filed for Chapter 11 bankruptcy after warning it had “substantial doubt” about its survival. As part of its efforts to stabilize, the company is closing a significant number of stores. The bankruptcy follows a series of financial losses, a shrinking customer base, and escalating operational costs.
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The struggling retailer secured $707.5 million in financing to maintain its operations during the restructuring process, and announced plans to sell its business to Nexus Capital Management, a private equity firm, which has been named the “stalking horse bidder”—a designation that means that Nexus’s offer sets the minimum bid in a court-supervised auction, with the sale expected to close in the fourth quarter of 2024 if no higher bids emerge.
In a statement, CEO Bruce Thorn said, “The actions we are taking today will enable us to move forward with new owners who believe in our business and provide financial stability. We aim to optimize our operational footprint, enhance performance, and reinforce our position as a leader in extreme value.”
He added that, while most store locations remain profitable, the company will focus on a more streamlined footprint to operate more efficiently and better serve its customers.
What went wrong?
Big Lots’s financial situation had been deteriorating for some time. In recent quarters, it has reported steep declines in sales, further pressuring its balance sheet.
The company’s struggles are emblematic of broader challenges in the retail sector, which has seen an uptick in bankruptcy filings in 2024 as consumers tighten their spending. Inflation, increased competition, and changes in consumer habits have hit discount retailers like Big Lots particularly hard.
According to S&P Global, 21 retailers had filed for bankruptcy by mid-July.
While customers continue to seek value, they are not necessarily opting for low-cost items. “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,” the company explained.
Despite these challenges, Big Lots has stated that its second-quarter results are in line with its previous guidance. The full results, originally scheduled for release on September 6, have been postponed until September 12. The company remains focused on restructuring its operations and completing the sale to Nexus Capital in hopes of stabilizing its future.
The retailer operates around 1,400 stores across the United States and employs more than 30,000 workers.
Which locations are closing?
The company amended its credit agreements earlier this year to allow for store closures, and by July, it announced that up to 315 locations could close.
Although Big Lots has yet to publish a comprehensive list of its planned store closures, in the filing with Delaware’s bankruptcy court, the company has confirmed the commencement process of closing 295 stores. The filing included a list of more than 100 locations across 32 states whose leases are expected to be rejected in September. The list is as follows:
Arizona
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1416 E Route 66, Flagstaff, AZ
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17510 N 75th Ave, Glendale, AZ
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2020 N 75th Ave Ste 40, Phoenix, AZ
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230 E Bell Rd, Phoenix, AZ
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3630 W Baseline Rd, Laveen, AZ
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2840 E Main St, Ste 109, Mesa, AZ
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4525 N Oracle Rd, Tucson, AZ
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6839 E Main St, Mesa, AZ
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4727 East Bell Rd, Phoenix, AZ
California
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1482 E 2nd St, Beaumont, CA
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9500 Greenback Ln Ste 22, Folsom, CA
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52 W Court St, Woodland, CA
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3900 Sisk Road, Modesto, CA
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42225 Jackson St Ste B, Indio, CA
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6336 E Santa Ana Canyon Rd, Anaheim, CA
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810 Tri City Ct, Redlands, CA
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568 W Main St Ste B, Santa Paula, CA
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19331 Soledad Canyon Rd, Canyon Country, CA
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2620 Canyon Springs Parkway, Riverside, CA
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1702 Oceanside Blvd, Oceanside, CA
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1211 Olive Dr, Bakersfield, CA
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1531 Sycamore Ave, Hercules, CA
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14907 4th Ave SW, Burien, WA
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4847 Coconut Creek Pkwy, Coconut Creek, FL
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2236 SE Federal Hwy, Stuart, FL
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3517 W Baseline Rd, Laveen, AZ
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360 E 10th St, Gilroy, CA
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3331 Corridor Marketplace, Laurel, MD
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1531 Sycamore Ave, Hercules, CA
Colorado
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2151 Main St, Longmont, CO
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6626 South Parker Road, Aurora, CO
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2401 N Ave Ste 19B, Grand Junction, CO
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8100 W Crestline Ave Unit B5, Littleton, CO
Connecticut
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56 Turnpike Square, Milford, CT
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40 Boston Post Rd, Waterford, CT
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1470 Pleasant Valley Road, Manchester, CT
Florida
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328 E Sugarland Hwy, Clewiston, FL
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700 Blanding Blvd Ste 1, Orange Park, FL
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5580 NW 167th St, Miami Lakes, FL
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2236 SE Federal Hwy, Stuart, FL
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3921 Oakwood Blvd, Hollywood, FL
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25191 Chamber of Commerce Dr, Bonita Springs, FL
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1761 E Hallandale Beach Blvd, Hallandale, FL
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11230 S Orange Blossom Trl, Orlando, FL
Georgia
Illinois
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340 Summit Drive, Lockport, IL
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1608 N Larkin Ave, Crest Hill, IL
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7233 W Dempster St, Niles, IL
Indiana
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8401 Michigan Rd, Indianapolis, IN
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2136 E Markland Ave, Kokomo, IN
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9602 Georgia St, Crown Point, IN
Iowa
Kansas
Louisiana
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3557 Ambassador Caffery Pkwy, Lafayette, LA
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339 South Dr, Natchitoches, LA
Maine
Maryland
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3331 Corridor Marketplace, Laurel, MD
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21800 N Shangri La Dr Unit 20, Lexington Park, MD
Massachusetts
Michigan
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4254 28th St. SE, Kentwood, MI
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2850 Washtenaw Ave, Ypsilanti, MI
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6207 S Westnedge Ave, Portage, MI
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2020 Grand River Ave, Okemos, MI
Minnesota
Missouri
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4930 Christy Blvd Ste 2, Saint Louis, MO
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13637 Washington St, Kansas City, MO
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1417 N Belt Hwy, Saint Joseph, MO
Montana
New Mexico
New York
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260 Voice Rd, Carle Place, NY
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231 Centereach Mall, Centereach, NY
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751 Upper Glen St, Ste 2, Queensbury, NY
North Carolina
Ohio
Oregon
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2025 Lancaster Dr. NE, Salem, OR
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2000 14th Ave SE, Albany, OR
Pennsylvania
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713 E Baltimore Ave, Clifton Heights, PA
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201 West Lincoln Hwy, Exton, PA
South Carolina
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1016 Pine Log Rd, Aiken, SC
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1841 J A Cochran Byp Ste A, Chester, SC
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1937 Wilson Rd, Newberry, SC
South Dakota
Tennessee
Texas
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123 Main St, Dallas, TX
Utah
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1617 North Main Street, Logan, UT
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1030 North Main Street, Layton, UT
Virginia
Washington
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6727 Evergreen Way, Everett, WA
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2815 Capital Mall Drive SW, Olympia, WA
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1940 E 1st St, Port Angeles, WA
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14215 SE Petrovitsky Rd, Renton, WA
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14907 4th Ave SW, Burien, WA
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5710 196th St SW, Lynnwood, WA
Wisconsin
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5415 Washington Ave, Mount Pleasant, WI
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3426 Kohler Memorial Dr, Sheboygan, WI
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1690 S Main St, West Bend, WI
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N78W14511 Appleton Ave, Menomonee Falls, WI
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616 W Johnson St, Fond Du Lac, WI
In addition, 300 stores have updated their web pages with banners reading “closing this location,” the Hill reports, and are offering customers discounts of up to 20% off.
This post originally appeared at fastcompany.com
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