Rockwall, Texas – Big Lots announced that it will be closing all of its stores around the country in what appears to be a significant development affecting the retail sector. The decision covers the Rockwall business on Ridge Road too, which has been serving the neighborhood for the past few years. Once running more than 1,300 outlets in 48 states, the corporation has experienced major financial problems that have resulted in this drastic measure.
Three months ago in September, Big Lot sought Chapter 11 bankruptcy protection; since then, it has been trying to save its business by liquidating 400 unproductive stores. With a $620 million sale to Nexus Capital Management allowed by the court in late October, it appeared to be a lifeline. But the sale has subsequently fallen through, forcing the business to close its last 870 outlets.
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The company said that “going out of business” sales will start in the next days, therefore marking the end of a discount retailer’s period. Although the precise schedule for the closures is unknown, sales will most certainly continue until all of the goods is sold.
Bruce Thorn, President and CEO of Big Lots, expressed deep regret over the decision.
“We all have worked extremely hard and have taken every step to complete a going concern sale,” Thorn said. “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 Lot’s closing will affect thousands of workers across the country, in especially sensitive period, just days before Christmas. Although the corporation does not have exact employees plans, it is expected that most of its staff would experience job losses when the liquidation sales end.
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Big Lot’s challenges reflect a larger retail industry trend as bankruptcy filings this year show a 16.2% rise. An NBC News analysis claims that just the retail industry made 49 of such registrations. The report also highlighted that over 7,300 store closures have been reported across various retailers this year, with Big Lots being among the most affected.
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These closures have drastically changed the terrain of discount retailing, therefore affecting both communities and the employment market. As Big Lots winds down its operations, the focus will shift to the aftermath for the employees and the spaces once occupied by these stores. Other stores who have negotiated bankruptcy processes, such as Red Lobster, offer hope that some companies might come out of financial crisis intact.
