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Big Lots calls it quits with nationwide going-out-business sales, including in California

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Big Lots calls it quits with nationwide going-out-business sales, including in California

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After years of financial struggles, big box retailer Big Lots will begin going-out-business sales at its remaining locations, including all stores in California.

The announcement came on Thursday when Big Lots officials said they do not anticipate completing a potential asset purchase agreement with Nexus Capital Management.

Big Lots officials say the goal is to complete a sale to Nexus or another party by early January, with CEO Bruce Thorn saying the closures could be reversed if a company sale is completed.

Meanwhile, going-out-of-business sales will begin in the coming days at all its locations to protect the value of its estate, the company said.

Big Lots will continue to serve customers in-store and online, and will provide updates as available, the retailer stated.

Big Lots: Big Lots closing five more stores in California as retailer navigates bankruptcy

California hit hard by closures

In August, Big Lots officials added dozens of California locations expected to shut down soon as the company faces financial struggles.

In September, Big Lots filed for Chapter 11 bankruptcy protection weeks after announcing plans to close 340 stores across the United States.

 Big Lots currently had operated 109 stores in California, the second highest in the country behind Texas. There were about 1,400 Big Lots nationwide.

Big Lots officials in September announced the permanent closure of its Apple Valley Distribution Center, while laying off 349 employees.

“All employees currently employed at the AVDC will have their employment permanently terminated no later than Oct. 31, 2024,” a Big Lots official said in a letter to the California Employment Development Department and Apple Valley Mayor Scott Nassif.

All Big Lots associates involuntarily terminated by the closure will receive pay and benefits through Nov. 3.

“There is no union representative and there are no bumping rights,” the company stated.

Located on Navajo Road, in the town’s industrial area, the Big Lots 1.35 million square foot distribution center opened in 2020 amid the start of the COVID-19 pandemic.

Nearly three years ago, residents were thrilled when Big Lots opened inside the abandoned Orchard Supply Hardware store building in the Midtown Square shopping center in Hesperia.

Why is Big Lots closing?

Like many others, the retailer has grappled with declining sales amid rising prices and a downturn in consumer spending. According to the financial disclosure, sales dropped 10.2% between the first quarters of 2023 and 2024, equating to a loss of about $114.5 million.

The company also took on an additional $72.2 million, bringing the total from $501.6 million in the first quarter of 2023 to $573.8 million for the first quarter of this year. The company also said it had “substantial doubt” about its ability to continue operating, leading to speculation of a potential bankruptcy filing.

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