Big Lots files for Chapter 11 bankruptcy protection
The store on Atlanta Highway is one of 4 Big Lots in the area./Source: WAKA Action 8 News
Discount retailer Big Lots has filed for Chapter 11 bankruptcy protection as it contends with a pullback in consumer spending and soft sales.
The company plans to sell its assets and ongoing business operations to private equity firm Nexus Capital Management.
Big Lots, which sells furniture, home decor and other items, said Monday that high inflation and interest rates have hurt its business as consumers have pulled back on their home and seasonal product purchases, two categories the chain depends on for a significant part of its revenue.
The 57-year-old company has secured over $700 million in fresh financing to keep operating and to pay employees and vendors.
Big Lots is in the process of closing roughly 300 of its 1400 stores across the United States. And the company said more store closures could be coming.
No word on whether the stores in our area will be impacted.
Big Lots joins a growing list of well-known retailers hitting financial turbulence as customers cut back spending on non-essential items.
