After filing for bankruptcy protection, Big Lots plans to close hundreds of stores, including seven in New Jersey.

Earlier this month, the Ohio-based discount home goods chain said it initiated voluntary Chapter 11 proceedings ahead of an expected acquisition by private equity firm Nexus Capital Management.

The bankruptcy filing came about a month after Big Lots said it would close roughly 300 of its 1,400 stores nationwide and work with A&G Real Estate Partners to auction off leases. 

At the time, only one New Jersey location in the chain’s 27-store fleet was impacted: Woodbridge. However, Big Lots also said it would continue to assess its operational footprint — and that additional stores could go dark.

Now, the retailer has flagged those added stores for closure by mid-January, The Hill reported.

That list includes East Brunswick, Freehold, North Bergen, Ocean, Phillipsburg and Union. At each store, closing sales currently offer up to 20% off merchandise.

Under the terms of the proposed sale, Nexus would acquire “substantially all” of Big Lots’ stores and business operations for about $760 million. That sum includes $2.5 million in cash as well as remaining debts and liabilities.

Stores not previously announced to close will remain open and serving customers, as will Big Lots’ website, the company said.

‘A more focused footprint’

In connection with the court-supervised process, Big Lots said it secured $707.5 million in fresh financing, including $35 million from current lenders, to keep operating and pay employees and vendors.

Unless higher or better offers materialize during the court-supervised auction process, the transaction expects to close during the fourth quarter of 2024.

In June, Big Lots expressed “substantial doubt” about its ability to continue as a going concern, citing a pullback in consumer spending due to inflation.

As part of a turnaround effort, Big Lots says it is taking steps to reduce costs, improve sales, and enhance its financial flexibility and liquidity.

While the company says its performance has improved, the board of directors conducted a strategic review of alternatives and determined that a sale to Nexus is the best path forward to maximize value and ensure continued operations.

Big Lots President and CEO Bruce Thorn has said, “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.”

Headquartered in Los Angeles, Nexus’ investment portfolio includes FTD, Dollar Shave Club and Toms.

In a statement, Evan Glucoft, the firm’s managing director, said, “We are excited to have the opportunity to partner with Big Lots and help return this iconic brand to its status as America’s leading extreme value retailer. The Big Lots business has incredible potential and we are confident that its greatest days are ahead.”