Following its Chapter 11 filing in September, discount home goods chain Big Lots was expected to sell “substantially all” of its stores and business operations to private equity firm Nexus Capital Management for about $760 million. 

That sale apparently will no longer happen, according to a Dec. 19 announcement from the Ohio-based retailer, which will now initiate going-out-of-business sales at all remaining locations.

Big Lots filed a Worker Adjustment and Retraining Act (WARN) notice that same day, announcing “mass layoffs” at its Columbus, Ohio, headquarters. The cuts will affect up to 555 employees, including President and CEO Bruce Thorn. 

The company expects to begin the layoffs the week of Dec. 29 and complete them by April 2025, according to the WARN filing.  

Closing doors

According to its website, Big Lots currently has 18 locations in New Jersey. 

The company said that although it does not expect to close its previously announced deal with Nexus “it continues to work toward completing an alternative going concern transaction with Nexus or another party.” 

The goal would be to complete a sale by early January.  

However, the company said it opted to launch going-out-of-business sales “in the coming days to protect the value of its estate.” Big Lots added it believes the sales “will not preclude it from effectuating a going concern transaction.” 

“We all have worked extremely hard and have taken every step to complete a going concern sale,” Thorn said. “While we remain hopeful that we can close an alternative going concern transaction, in order to protect the value of the Big Lots estate, we have made the difficult decision to begin the GOB process.” 

This summer, following a round of store closures, the company pointed to inflation as the root of consumer spending pullback. In a June 13 filing with the Securities & Exchange Commission, Big Lots expressed “substantial doubt” about its ability to continue as a going concern. 

More workforce reductions:

• Fresh wave of health care layoffs hits NJ at Novartis, Bristol Myers Squibb
• Walmart closing 2nd South Jersey fulfillment center
• Prudential layoffs top 600 with latest WARN notice