(NEXSTAR) – After filing for Chapter 11 bankruptcy protection and closing hundreds of stores, Big Lots is preparing to close all of its locations, the company confirmed on Thursday.
In a press release, the company said it will begin “going out of business” sales at all of its remaining locations — totaling 963 as of Thursday — after failing to complete its previously announced sales to Nexus Capital Management, a private equity firm.
More than 400 Big Lots stores have already closed this year, marking a roughly 30% reduction in its footprint.
In an email to employees that was shared with Nexstar, CEO Bruce Thorn said that the pending store closures could “be reversed if we successfully complete a sale.”
“In the meantime, we will continue to serve our customers both in-store and online,” Thorn continued. He warned, however, that “a reduction in (work) force is necessary.” The reduction in workforce for corporate associates will begin in January, the email added.
“I recognize this is difficult news for all of us. You should be proud of the grit and resiliency you’ve demonstrated through what I know has been a challenging time,” Thorn wrote.
Big Lots filed for bankruptcy in September after warning earlier in the year that inflation and troubles competing with other retailers had cast “substantial doubt” on its ability to continue. Shortly after filing, Big Lots said it had plans to sell assets and business operations to Nexus Capital Management, a private equity firm.
In late November, Big Lots announced it had received court approval for the sale of “substantially all” of its assets and business operations to Nexus. That sale was expected to close in early December, but faltered.
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