Big Lots said Thursday (Dec. 19) that it is preparing to begin going out of business (GOB) sales at all its remaining stores after determining that it no longer expects to complete its previously announced sale to Nexus Capital Management.
The closeout retailer said in a press release that it is still working toward completing an alternative going concern transaction — with Nexus or another party — and believes that the GOB sales will not stop it from doing so.
Nexus Capital Management did not immediately reply to PYMNTS’ request for comment.
“We all have worked extremely hard and have taken every step to complete a going concern sale,” Big Lots President and CEO Bruce Thorn said in the release. “While we remain hopeful that we can close an alternative going concern transaction, in order to protect the value of the Big Lots estate, we have made the difficult decision to begin the GOB process.”
Big Lots aims to complete a sale by early January, according to the release.
In the meantime, the retailer continues to serve customers in its stores and online, per the release.
Big Lots announced Sept. 9 that it had declared bankruptcy to facilitate its sale to an affiliate of Nexus Capital Management. Thorn said at the time in a press release that the sale would provide financial stability that would enable the retailer to optimize its operational footprint and improve its performance.
It was reported in August that Big Lots was considering bankruptcy after seeing years of sales declines. Earlier in the year, the retailer received a loan to help it navigate a liquidity crunch.
Big Lots was a “once stalwart” company in the retail discount landscape but has faced challenges in recent years, Sudip Mazumder, senior vice president, retail industry lead, North America at digital consultancy Publicis Sapient, told PYMNTS in an interview posted Sept. 9.
“The company’s traditional brick-and-mortar model, heavily reliant on closeout merchandise, became less appealing to a market increasingly seeking convenience, variety and unique offerings,” Mazumder said. “The rise of eCommerce and shifting consumer preferences caught Big Lots off guard, leaving it struggling to keep pace.”
In an effort to modernize its digital offerings, Big Lots launched a new app in November, saying it offers a variety of features designed to improve customer engagement and streamline the shopping experience.
“The Big Lots app integrates in-store and online shopping by providing an all-in-one platform where users can manage various aspects of their shopping experience,” Bruce Millard, senior vice president of marketing and eCommerce at Big Lots, told PYMNTS in an interview posted Monday (Dec. 16).
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