Discounter Big Lots files for bankruptcy
The discounter Big Lots has filed for bankruptcy under the US Chapter 11 procedure, citing high inflation and high interest rates as the reason.
Straight Arrow News
Big Lots announced the closure of hundreds of stores after the company announced Monday that it had filed for bankruptcy.
In July, Big Lots announced it would close 35 to 40 stores nationwide. According to USA TODAY, the company has since filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware.
How many big lots will be closed?
According to USA TODAY, Big Lots announced the closure of 315 stores in an August filing with the Exchange Commission.
Are any of the Iowa Big Lots closing?
The retailer has not yet announced which stores will close, but its website marked many stores as closed and a court document listed about 100 stores, saying the company plans to reject the leases for those locations.
“While the majority of our stores are profitable, we intend to move forward with a more focused profile to ensure we can operate efficiently and best serve our customers,” Thorn said in the release. “To achieve this, we intend to use the tools provided by this process to continue to optimize our store fleet in an orderly manner.”
More: Big Lots is closing up to 40 stores. Where is the retailer in Iowa?
Why is Big Lots closing its stores?
The closures are due to a sales agreement with Nexus Capital Management LP. The company has agreed to acquire all of Big Lots’ assets and ongoing operations.
Where are there large properties in Iowa?
Iowa currently has three Big Lots stores. As of 1 p.m. Monday, all three were still listed as open on the stores’ website. None of the three stores were listed as planned closures in the bankruptcy filings.
- Burlington: 3320 Agency St.
- Davenport: 3562 N. Brady St.
- Des Moines: 4365 Merle Hay Road
Kate Kealey is a general assignment reporter for the Register. Reach her at [email protected] or follow her on Twitter at @Kkealey17.
Reporting by Saleen Martin.
