BETHLEHEM, Pa. — Going out-of-business sales for the Lehigh Valley’s four Big Lots discount stores likely will be underway in early January without an alternative solution.
Big Lots announced Thursday it doesn’t expect to complete its previous purchase agreement with Nexus Capital Management.
While it works toward completing “an alternative going concern transaction,” with Nexus or another party by early January, Big Lots said in a news release it’s preparing to start going-out-of-business sales at all remaining locations “in the coming days to protect the value of its estate.”
“The Company believes that the GOB sales will not preclude it from effectuating a going concern transaction,” the release said.
Lehigh Valley locations are at 2349 Lehigh St., Allentown; 2192 W Union Blvd., Bethlehem; 7150 Hamilton Blvd., Trexlertown; and 2631 Macarthur Road, Whitehall Township.
All of those locations also have available jobs posted.
A Sept. 9 release said Big Lots has been impacted by high inflation and interest rates, “as its core customers curbed their discretionary spending on the home and seasonal product categories that represent a significant portion of the Company’s revenue.”
In that release, Big Lots Chief Executive Officer Bruce Thorn announced it “initiated voluntary Chapter 11 proceedings” to facilitate its sale agreement to Nexus Capital Management.
The move would enable the company to “move forward,” the release 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,” Nexus Managing Director Evan Glucoft said in the September release.
“The Big Lots business has incredible potential and we are confident that its greatest days are ahead.”
The announcement — in which Thorn said the “majority of our store locations are profitable” — came three days after Big Lots postponed its second-quarter earnings release.
Thorn said Big Lots would continue to optimize the company’s store fleet.
On Nov. 22, Big Lots received court approval for its sale to Nexus. The sale was expected to close early December.
The company said it will continue to serve customers and provide updates as available.
The release did not share a specific date that going-out-of-business sales would start, but said all 963 stores would be impacted.
