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 ...

Company Overview - Big Lots (BIG) is expected to report a year-over-year decline in earnings, with a projected loss of $3.69 per share, reflecting a change of -13.9% [3] - Revenues for the upcoming quarter are anticipated to be $1.04 billion, down 8.4% from the same quarter last year [3] Earnings Estimates and Revisions - The consensus EPS estimate has been revised 1.44% lower over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10] - The Most Accurate Estimate for Big Lots is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.36% [10] Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a negative Earnings ESP reading, combined with a Zacks Rank of 4 (Sell), makes it difficult to predict an earnings beat for Big Lots [10][17] - Historically, Big Lots has beaten consensus EPS estimates two times over the last four quarters, but in the last reported quarter, it missed expectations by delivering a loss of $4.51 per share against an expected loss of $4.23 [11][12] Industry Context - In comparison, Dollar Tree (DLTR), another player in the discount retail sector, is expected to post earnings of $1.04 per share, indicating a year-over-year change of +14.3% [16] - Dollar Tree's revenues are projected to be $7.51 billion, up 2.5% from the previous year, but it also has a negative Earnings ESP of -1.82% and a Zacks Rank of 4 [16][17]

Key Takeaways Big Lots shares tumbled following reports the discount retailer is considering filing for bankruptcy protection in the coming weeks. The company is also looking for investments as a way to avoid filing for Chapter 11 bankruptcy, Bloomberg reported. Declining sales have hampered Big Lots' earnings and stock price. Discount retailer Big Lots (BIG) is reportedly seeking investors to avoid filing for Chapter 11 bankruptcy protections after an extended decline in sales and several quarters of losse ...