Big Lots closing all stores, liquidation sales starting soon

The big picture: Dollar stores and discount stores catering to lower-income shoppers have been under pressure as their target audience pinched pennies.

• With Big Lots in crisis mode earlier this year, the company turned to more of the "extreme" bargains it has long considered its sweet spot — but those deals weren't enough to stave off financial ruin.

Big Lots store closings

Between the lines: Big Lots had been hoping to stay in business by closing hundreds of unprofitable stores and arranging a $620 million sale to private equity firm Nexus Capital Management.

• But the deal fell apart, Big Lots said Thursday in a statement.
• As a result, the company said it will initiate going-out-of-business sales at all of its locations "in the coming days."

Yes, but: It will call off the liquidation if it can reach a last-minute company-saving deal with Nexus or another entity, the company said.

• The company's goal is to complete a sale by early January, it said.

What they're saying: "We all have worked extremely hard and have taken every step to complete a going concern sale," CEO Bruce Thorn said in a statement.

• "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."

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