TOMS RIVER, NJ – Big Lots, a popular overstock and discount chain store has already announced the closure of one New Jersey location, but more could be coming.
The company operates stores across New Jersey, but so far, the Garden State has been spared.
Big Lots is facing some major turbulence as it announced more store closures and entered into a sale agreement with Nexus Capital Management. This move comes as the company kicks off a voluntary Chapter 11 bankruptcy process, allowing it to restructure and hopefully recover after a rough few years.
Big Lots has been trying to pivot its business strategy, but like many retailers, the company has been hit hard by rising inflation and economic slowdowns, which have squeezed its core customers’ spending.
Nexus Capital will take over most of Big Lots’ assets and operations, aiming to revive the company and strengthen its position in the “extreme value” retail space. Despite the shake-up, Big Lots promises that customers will still find great bargains in stores and online. However, part of the plan includes downsizing, meaning even more store closures are on the horizon.
CEO Bruce Thorn emphasized that while many Big Lots stores remain profitable, the goal now is to operate a more “focused footprint” to stay efficient. In other words, Big Lots needs to trim down to survive in a challenging retail market. But with a $707.5 million financing package in place, the company hopes to make it through this restructuring process and reach profitability by 2025.
It’s a tough time for Big Lots, but with Nexus Capital at the helm, there’s hope for a comeback. Fans of Big Lots’ unbeatable deals might see fewer stores around, but the company is banking on becoming leaner, meaner, and more profitable in the near future.