Core Insights - Big Lots is undergoing a Chapter 11 restructuring and preparing for acquisition by Nexus Capital Management, highlighting significant issues in its business model and the economic pressures it faces [1][9] Business Model Challenges - The traditional brick-and-mortar model of Big Lots, which relies heavily on closeout merchandise, has become less appealing as consumers increasingly seek convenience and variety [3][4] - The rise of eCommerce and changing consumer preferences have left Big Lots struggling to keep pace, compounded by a limited online presence [3][4] Competitive Landscape - Big Lots faces fierce competition from discount retailers like Dollar General and Dollar Tree, as well as online marketplaces such as Amazon, which offer lower prices and a broader selection [4][5] - The economic impact of the COVID-19 pandemic has further strained Big Lots, leading to declining sales, store closures, and financial difficulties [5][9] Consumer Behavior Trends - A PYMNTS Intelligence study indicates that approximately 40% of consumers identify as Click-and-Mortar shoppers, preferring a blend of digital and physical shopping experiences [5] - The trend of consumers reducing discretionary spending has been noted, with 60% of shoppers cutting back on nonessential purchases [8][9] Inventory and Product Focus - Big Lots has a heavy reliance on discretionary categories like furniture and home decor, which have seen a slowdown in consumer spending [10] - The company has been slow to invest in the grocery category, facing stiff competition from retailers like Aldi and Walmart, which have aggressively cut prices [11] Future Outlook - The future of Big Lots remains uncertain, but a potential acquisition by a private equity firm could provide necessary resources and expertise for recovery [5] - Big Lots plans to assess its store footprint and may close additional locations as part of its restructuring process [12]

Core Viewpoint - Big Lots has filed for Chapter 11 bankruptcy protection due to declining consumer spending and soft sales, planning to sell its assets and ongoing operations to Nexus Capital Management [1][2]. Group 1: Financial Performance - High inflation and interest rates have negatively impacted Big Lots' business, leading to a significant pullback in consumer purchases of home and seasonal products, which are crucial for revenue [2]. - Sales at stores open for at least a year have declined for nine consecutive quarters, indicating ongoing struggles in retail performance [2]. Group 2: Strategic Decisions - The board of Big Lots determined that selling to Nexus Capital was the best strategic move despite some improvement in performance [3]. - The company will continue operations during the court-supervised sale process but plans to close some stores without specifying details [4][5]. Group 3: Financing and Auction Process - Big Lots has secured commitments for $707.5 million in financing, including $35 million in new financing from current lenders, to support operations during the sale process [8]. - Nexus Capital will act as a "stalking horse" bidder in a court-supervised auction, with the sale subject to higher bids [6]. Group 4: Market Position and Challenges - Big Lots operates in a highly competitive market where other value retailers are outperforming in delivering low prices and compelling bargains [7]. - The company has received a notice from the New York Stock Exchange due to its stock price falling below $1 for 30 consecutive trading days, with shares dropping 40% to 30 cents in premarket trading [9].

Company Overview - Big Lots Inc. is preparing to file for bankruptcy and plans to sell its chain of stores through a court-supervised process due to high interest rates and a sluggish housing market affecting demand for its products [1][6] - The company operates over 1,300 stores across 48 states and generated approximately $4.7 billion in revenue in fiscal 2023, but has seen a consistent decline in sales post-pandemic [3][6] Bankruptcy Details - Big Lots has agreed to sell its business to private equity firm Nexus Capital Management for about $760 million, which includes $2.5 million in cash along with its remaining debt and liabilities [2] - As part of the bankruptcy process, Big Lots will close nearly 300 stores to improve its balance sheet and reduce costs [4] Management Statements - CEO Bruce Thorn stated that the actions taken will allow the company to move forward with new owners who believe in its business and provide financial stability [5] - Nexus Capital's managing director expressed confidence in Big Lots' potential for recovery and aims to restore the brand's status as a leading extreme value retailer [5] Market Challenges - Big Lots has faced challenges due to macroeconomic factors such as high inflation and interest rates, which have led its core customers to reduce discretionary spending [7] - The company operates in a highly competitive market, struggling to differentiate itself from other discount retailers like Wayfair, Walmart, and TJX Cos.' Home Goods [7][8] Consumer Perception - Analysts have noted that Big Lots may not always offer the best value for money, with many items available at lower prices from competitors [8] - The shopping experience has been criticized for being unsatisfactory due to a jumbled assortment of products, which detracts from consumer appeal compared to other discount retailers [9]

KEY TAKEAWAYS Big Lots filed for Chapter 11 bankruptcy protections and agreed to sell itself to an affiliate of privateequity firm Nexus Capital Management. The filing by the home goods and furniture retailer follows extended sales declines and several quarters of losses at the discount retailer. The Ohio-based firm said Nexus will serve as the "stalking horse bidder" in a court-supervised auction process, and that the deal will close in the fourth quarter if it doesn't get better offers. Big Lots (BIG) fil ...

Discount retailer Big Lots has declared bankruptcy and sold itself to an investment firm. The company announced Monday (Sept. 9) that it had entered voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware, to facilitate its sale to an affiliate of Nexus Capital Management. The retailer also indicated it will close some locations. "The actions we are taking today will enable us to move forward with new owners who believe in our business and provide financial stability, whil ...

About three months after Big Lots noted "substantial doubt about the Company's ability to continue" in a U.S. Securities & Exchange Commission (SEC) filing, the company said on Monday it has secured $707.5 million to support its operations and sell its business to private equity firm Nexus Capital. This comes as the company has initiated bankruptcy proceedings under Chapter 11. Big Lots listed its assets and liabilities in the range of $1 billion to $10 billion, according to a filing with bankruptcy court i ...

Discount home goods retailer Big Lots is preparing to file for bankruptcy as early as this Sunday and plans to sell its chain of stores through a court-supervised process, Bloomberg News reported Friday, citing people familiar with the situation. The company will remain in operation under Chapter 11 protection, the report said, and is currently in the process of securing a stalking horse bid, which means that the bid could be outdone if better offers emerge. Earlier in the day, the retailer announced the po ...

Group 1 - Big Lots, Inc. has postponed the release of its financial results for the second quarter of fiscal 2024, which ended on August 3, 2024, from September 6 to September 12, 2024 [1] - Big Lots is one of the largest closeout retailers in the United States, focusing on providing extreme value to customers [2] - The company aims to help customers "Live BIG and Save LOTS" through various sourcing strategies, including closeouts, liquidations, overstocks, private labels, and value-engineered products [2] Group 2 - The Big Lots Foundation has contributed over $176 million in philanthropic support to address critical needs in areas such as hunger, housing, healthcare, and education [2]

Core Insights - Big Lots, Inc. is expected to report a quarterly loss of $3.46 per share for the second quarter, compared to a loss of $3.24 per share in the same period last year [2] - The company projects quarterly revenue of $1.04 billion [2] - There are considerations for filing for bankruptcy due to years of declining sales [2] - Big Lots shares experienced a decline of 10.9%, closing at $0.4553 [2] Analyst Ratings - Telsey Advisory Group analyst Joseph Feldman maintained a Market Perform rating and reduced the price target from $2.5 to $1.5 [2] - Piper Sandler analyst Peter Keith maintained an Underweight rating and lowered the price target from $3.5 to $3 [2] - Goldman Sachs analyst Kate McShane maintained a Sell rating and cut the price target from $5 to $4 [2] - The consensus price target for Big Lots is $1.586 based on recent analyst ratings [2]

Big Lots is reportedly weighing the possibility of filing for bankruptcy due to declining sales. The discount retailer is considering filing for bankruptcy as a potential option, Bloomberg reported late Wednesday, citing people with knowledge of the plans. A source familiar with the situation told the outlet that Big Lots is trying to dodge Chapter 11 by hunting for investors. BIG LOTS COULD POTENTIALLY CLOSE 315 STORES Bloomberg's report came about two-and-a-half months after the discount retailer flagged ...