Big Lots files for Chapter 11 bankruptcy protection, more store closures on the way
Big Lots is has filled for chapter 11 bankruptcy protection and plans on closing more stores than they originally anticipated.
In the July 31 filing, the company asked to increase the number of potential closings from 150 to 315 to “aggressively address underperforming stores.”
Big Lots said that its performance has been improving, but that its board determined during a strategic review that the proposed sale to Nexus was the right move for the business.
Big Lots CEO Bruce Thorn said the company had missed its sales goals in Q1 due to “pullback in consumer spending by our core customers, particularly in high ticket discretionary items.”
“The current financial performance does not yet reflect the stronger business model that we’ve created through our five key actions, but we expect the fruits of those efforts to become more apparent in the back half of the year,” 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, while we optimize our operational footprint, accelerate improvement in our performance, and deliver on our promise to be the leader in extreme value,” Big Lots President and CEO Bruce Thorn said in a statement.
Currently it doesn’t appear that they’ll close any locations in East Tennessee, but three stores in West Tennessee and Middle Tennessee aren’t so lucky.
Union City -1410 South 1st Street
Photo Credit REUTERS/Jim Young
