Big Lots Announces ‘Going Out Of Business Sale' As Nexus Acquisition Falls Through

Company Overview - Big Lots has entered voluntary Chapter 11 bankruptcy proceedings and plans to begin going-out-of-business sales at its remaining 900 stores after a failed acquisition deal with Nexus Capital Management [14][15][22] - The company has already closed about 400 stores this year, indicating significant downsizing [14] Financial Performance - Big Lots reported net sales of $1 billion for the first quarter, down 10$205 million [17] - For fiscal 2024, revenues were $4.7 billion, a decline of 14$482 million compared to $211 million in 2023 [17] - The company ended the first quarter with inventory valued at$950 million, a 13% decrease from the previous year [5] Market Conditions - The furniture and home furnishings retail segment has declined by 3.3% to $123 billion, contrasting with a 3.5% increase in the overall core retail market [10] - Big Lots attributed its missed sales goals to a pullback in consumer spending, particularly in high-ticket discretionary items [4] Employee Impact - The announcement of the going-out-of-business sales has left approximately 27,000 employees facing unemployment in the New Year [16] Acquisition Attempts - Nexus Capital Management's initial plan to acquire Big Lots has stalled due to lower-than-expected inventory valuation, making the deal economically unviable [28] - Big Lots is still in discussions with Nexus and another firm about potentially keeping "several hundred" stores open [6]