Discount retail chain moving to Chapter 7 bankruptcy

Core Insights - The article discusses the evolving nature of brand survival post-bankruptcy, highlighting that some brands can continue under new ownership, as seen with David's Bridal and Big Lots [1][2][4] Bankruptcy and Brand Continuity - In cases of bankruptcy, a new owner may take over and continue operating under the original brand name, preventing complete brand disappearance [1] - U.S. Bankruptcy Judge Christine M. Gravelle approved a no-cash sale to Cion Investment Corp. for David's Bridal, emphasizing the potential harm to customers if the brand were to liquidate [2] Liquidation and Brand Disappearance - Typically, if no offers are made, brands may be liquidated and disappear temporarily, as seen with Modell's Sporting Goods, Sports Authority, and Borders Books and Music [3] - Big Lots is currently in the final phase of a long liquidation process under Chapter 11 bankruptcy protection [3] Big Lots' Unique Bankruptcy Experience - Big Lots underwent a complex Chapter 11 bankruptcy, where some stores closed and reopened under new ownership while retaining the Big Lots name [4] - Variety Wholesalers acquired the rights to operate between 25% and 50% of Big Lots' approximately 800 stores, leading to confusion among customers regarding ownership [5] Challenges Faced by Big Lots - Big Lots has struggled in recent years due to its traditional brick-and-mortar model, which relied heavily on closeout merchandise [6] - The rise of eCommerce and changing consumer preferences caught Big Lots off guard, leading to difficulties in adapting to the market [7]