- Big Lots filed for Chapter 11 bankruptcy this week and is planning hundreds of store closures.
- Private equity firm Nexus Capital Management plans to acquire the retailer.
- I visited a Big Lots store in Maryland to see what it’s like to shop there.
Big Lots is facing some big problems.
The discount retail chain filed for Chapter 11 bankruptcy on Monday after postponing its earnings report. It’s also planning to shutter 295 of its roughly 1,400 stores, according to a filing in Delaware’s bankruptcy court.
Private equity firm Nexus Capital Management plans to acquire Big Lots for an undisclosed amount after it emerges from bankruptcy, the retailer said on Monday. Nexus already owns several consumer brands, including Dollar Shave Club and shoe brand Toms.
Big Lots cited high interest rates and inflation among the factors that have held back its sales in a statement announcing the Chapter 11 filing. Many of its customers have cut back spending on home decor and other non-essential purchases that make up most of what Big Lots stocks, the company added.
Plenty of shoppers are trimming their budgets, especially for purchases they can live without, like eating out or upgrading their home appliances.
But Big Lots has long marketed itself as a place to find great deals. The company has said that it buys products cheaply from suppliers and other retailers, which enables them to keep prices low. That seems like a model that should be working at a time like this. Big Lots did not respond to a request for comment from Business Insider.
To see what shopping at the chain is like these days, I went to a Big Lots store in the Washington, DC, area. Here’s what I found:
