A pair of Big Lots stores located in Northern Nevada are shutting down amid the discounter retail closing more than 300 stores nationwide and come weeks after the company filed for Chapter bankruptcy protection, according to My News 4.
The stores, located in Lemmon Valley and on S. McCarran, are just another part of the hundreds of stores that are closing, but the Sparks and Carson City locations will remain open for the time being.
Big Lots, a Columbus, Ohio-based company, plans to sell its assets and ongoing business operations to private equity firm Nexus Capital Management and says that high inflation and interest rates have hurt its business, per an official statement.
The company also noted that consumers are pulling back from purchasing home and season products, which are two significant parts of the Big Lots revenue model.
While Big Lots said that its performance has been improving, they said that their board determined during a strategic review that the proposed sale to Nexus Capital Management was the right move for the business.
“The actions we are taking today will enable us to move forward with new owners who believe in our business and provide financial stability, while we optimize our operational footprint, accelerate improvement in our performance, and deliver on our promise to be the leader in extreme value,” Big Lots President and CEO Bruce Thorn said in a statement. “Big Lots operates in a very crowded and competitive market where other value players do a far better job of delivering on low prices and compelling bargains. It needs to step up its game if it is to succeed post-bankruptcy.”
Nexus Capital will serve as a “stalking horse” bidder in a court-supervised auction and the the proposed sale is subject to higher offers and additional bids that can be considered, but if Nexus Capital winds up with the wining bid, that deal would be expected to close sometime during the fourth quarter.