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The bankruptcy filing comes days after Big Lots said it was closing a distribution center in Columbus, leaving nearly 400 people without jobs.
COLUMBUS, Ohio — Discount retailer Big Lots has filed for bankruptcy.
The Chapter 11 filing was filed in the United States Bankruptcy Court District of Delaware on Monday. As part of the filing, the Columbus-based company said that private equity firm Nexus Capital Management is acquiring “substantially all” of Big Lots stores and business operations.
“The actions we are taking today will enable us to move forward with new owners who believe in our business and provide financial stability, while we optimize our operational footprint, accelerate improvement in our performance, and deliver on our promise to be the leader in extreme value,” CEO Bruce Thorn said in a statement.
The company said that it has been affected by macroeconomic factors, such as high inflation and interest rates, that presented challenges.
The bankruptcy filing comes days after Big Lots said it was closing its distribution center in west Columbus, leaving nearly 400 people without jobs.
In July, the company said it planned to close up to 315 stores — some of which are in Ohio — to “aggressively address underperforming stores.”
Most of the store closures appear to be in California, Florida, Washington and Arizona. Big Lots operates 1,389 stores nationwide.
In addition to the bankruptcy, the company said it is continuing to assess its operations, which will include closing additional store locations
“Though the majority of our store locations are profitable, we intend to move forward with a more focused footprint to ensure that we operate efficiently and are best positioned to serve our customers. To accomplish this, we intend to use the tools afforded by this process to continue optimizing our store fleet in an orderly manner,” Thorn said.
Big Lots said during and after the bankruptcy, it will serve customers at its stores and online.
This is a developing story. Stay with 10TV for more updates.
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