• by Tanya Gazdik , September 10, 2024

A retailer known for saving customers money is facing some financial troubles of its own. 

“Big Lots said Monday that it has filed for Chapter 11 bankruptcy protection from its debts, with the discount retailer citing inflation and high interest rates for hurting its business,” according to CBS News. “The bankruptcy filing comes a month after Big Lots said it would close as many as 315 stores nationwide, with additional closures coming.”

The Ohio-based company will be acquired by Nexus Capital Management for $760 million, consisting of $2.5 million in cash plus its remaining debt.

Nexus Capital Management “believes in our business and provides increased financial stability,” per Big Lots. It has invested in such companies as Dollar Shave Club and Toms, according to NPR.  

Customers will still be able to earn and redeem rewards, as well as use gift cards and store credit cards.

“The home goods sector has been under pressure over the last two years after demand surged during the Covid-19 pandemic,” according to CNBC. “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.”

Big Lots' president and CEO, Bruce Thorn, addressed the bankruptcy.

“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,” Thorn said in a statement, according to People.