Big Lots is closing, major discounts expected
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After filing for bankruptcy, Big Lots is closing its wholesale operations, including the location at 838 Winston Rd, Lexington. Local management could not provide details about the number of employees affected by the closure.
In September, Big Lots filed for Chapter 11 bankruptcy protection after announcing plans to close 340 stores across the United States. The company said at the time that the closures were part of a sale agreement with an affiliate of Nexus Capital Management LP. The company's plans were thwarted in their attempt to keep the stores open.
Regarding the announcement, David Campisi, Chief Executive Officer and President, remarked, "The Company’s leadership team is earnestly working and is strongly committed to developing a comprehensive and detailed strategic plan for the long term." The company researched 2013 sales to determine the best strategy. "Accordingly, we are assessing all facets of our present operations and potential new business avenues to establish a new direction, one where we believe we can best succeed and provide value for our customers, associates, and shareholders."
Future endeavors will include initiatives such as expanding our cooler and freezer program, launching furniture financing, and our ambition to enter the digital, social, and omnichannel arena. All of these possibilities, along with many more in progress, are aimed at better serving our target customer.
Campisi further stated, "As part of our strategic planning efforts, we must make tough choices regarding existing businesses or investments that are not yielding solid financial returns or where we do not see a long-term opportunity to succeed. Consequently, we have decided that shutting down our wholesale business is in the best interest of our company and its shareholders."
Big Lots Wholesale, Consolidated International, and Wisconsin Toys stores will beging a "winding down phase," the wholesale segment will liquidate its inventory, and whenever feasible, associates will be integrated into the closing sale operations over the next 90 days. One local employee said the decision did not come as a surprise. "I've been looking around for another job. I know they were stuggling."
"This is not a decision we make lightly, as many associates who have been committed and worked diligently to grow the wholesale business will be affected," Campisi said. "Over time, the wholesale business landscape has evolved, becoming increasingly competitive, and the opportunities for sales and margin growth are not as favorable as they once were. We believe that a more focused approach and investing in innovative ways to strengthen our relationship with customers will deliver greater value for our shareholders in the long run."
Big Lots was the largest broadline closeout retailer in North America. They currently operate 1,527 stores across the 48 contiguous United States, five stores in Canada, and 74 Liquidation World and LW stores in Canada. Wholesale operations are carried out through BIG LOTS WHOLESALE, CONSOLIDATED INTERNATIONAL, and WISCONSIN TOY, along with online sales at www.biglotswholesale.com.
Some local deals and closing sale prices are already in place, but customers will have to stay tuned. According to one associate, "We don't even know how long the sale is, what's on sale, or when it's going on sale."
