Big Lots Bloodbath Continues as Nexus Deal Implodes and Creditors Haunt Management for Their Money…

So, here we are again—another day, another retail obituary. This time it’s Big Lots, the discount chain that carved out a niche selling cheap furniture, pantry staples, and seasonal decor that always felt slightly out of season. The company is officially liquidating, and if you’re wondering whether we’ve been here before, the answer is yes. Welcome to 2024, where the retail apocalypse isn’t just a trend; it’s the whole playlist.

(Source: Giphy) 

In short, Big Lots isn’t just closing stores; it’s unraveling in real-time. After filing for Chapter 11 bankruptcy in September, the company pinned its hopes on a deal with Nexus Capital Management, the kind of private equity player that swoops in when things are circling the drain. But as of last week, the Nexus lifeline looks more like a frayed rope as talks have fallen through. And with a December 31 deadline looming and creditors banging on the door, Big Lots is opting for Plan B: liquidate it all. Translation: Those “Going Out of Business” signs are legit carrying the team right now.

The issue here is that the game has changed.  Big Lots once thrived as the go-to spot for budget-conscious shoppers looking to furnish their homes or stock up on random essentials. At its peak, the chain had 1,400 locations and over 30,000 employees. But as inflation tightened wallets and home spending cooled, even Big Lots’ loyal base of bargain hunters started looking elsewhere (Temu has entered the chat). 

(Source: Fast Company) 

What’s more is that the numbers tell the story better than I ever could. In Q2, Big Lots pulled in $1.05 billion in revenue—a drop of 8% compared to the same time last year. But here’s the kicker: a staggering $238.46 million net loss for the quarter. That’s not a “bad stretch”; that’s “we’re taking on water, and the lifeboats are already full.” Plus add in the bankruptcy drama—and you have a full on sh*t show. Landlords want their rent. Creditors want their money. The courts want some semblance of a plan. Meanwhile, Nexus Capital Management—the supposed savior—has left the company at the altar, alone. 

Zooming out, Big Lots isn’t just a standalone casualty; it’s part of a broader retail implosion. According to Coresight Research, 49 retailers have filed for bankruptcy this year, nearly double last year’s count. And store closures? We’re at 7,300 and climbing. Big Lots alone has shuttered 580 locations, trailing only Family Dollar (718) and CVS (586) in the race to turn retail spaces into vacant lots.

(Source: Yahoo Finance) 

The interesting part about all of this is the friggin’ irony. See, for years Big Lots was a place where you could snag a deal and feel good about it. Now, the deals are better than ever—because they have to be. The company isn’t just selling inventory; it’s selling what’s left of its identity. And while the discounts might be tempting, there’s something undeniably bleak about shopping a liquidation sale when you know the story behind it.

Meaning, if you’re feeling a little zesty today with nostalgia, head over to your local Big Lots while you can. Pick up that slightly wobbly bookshelf or half-price patio set. But don’t let the discounts distract you from the bigger picture: Big Lots’ collapse is less about one retailer’s failure and more about a retail landscape that’s increasingly hostile to anyone without deep pockets or a digital-first strategy.

In the meantime, this story is far from over and I’m sure there’s a few more fireworks that are just waiting to blow everyone’s minds with this. For now, it’s a wait and see game… for investors? Well, the future doesn’t look much like “a” future as of now. Meaning, filter this through a brain-cell and place your bets accordingly friends—and as always, stay safe and stay frosty! Until next time…

P.S. At the end of the day, we all know what drives the markets right? Greed and fear. That’s it. When big money starts piling into a certain place, stocks go up. When big money starts bleeding out of a certain place, stocks go down. It’s that simple. Which is why, with the Stocks.News insider tool, we are able to see this exact phenomenon play time and time again. So with that said, why not see how your portfolio is holding up with insiders BEFORE the next big move takes place (up or down)? Click here to snag a borderline outrageously cheap membership to Stocks.News premium and start leveraging our proprietary Insider Tool today! 

Stocks.News does not hold positions in companies mentioned in the article.