{"id":2339120,"date":"2024-09-10T11:45:01","date_gmt":"2024-09-10T15:45:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/high-inflation-forces-big-lots-to-file-for-bankruptcy-fate-of-its-1400-stores-uncertain\/"},"modified":"2024-09-10T11:55:00","modified_gmt":"2024-09-10T15:55:00","slug":"high-inflation-forces-big-lots-to-file-for-bankruptcy-fate-of-its-1400-stores-uncertain","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/high-inflation-forces-big-lots-to-file-for-bankruptcy-fate-of-its-1400-stores-uncertain\/","title":{"rendered":"&#8216;High Inflation&#8217; Forces Big Lots to File for Bankruptcy &#8211; Fate of Its 1,400 Stores Uncertain"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">32<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fhigh-inflation-forces-big-lots-to-file-for-bankruptcy-fate-of-its-1400-stores-uncertain%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2339120&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Big Lots, a discount retail chain operating around 1,400 stores, has filed for Chapter 11 bankruptcy, \u2064attributing \u200dits \u2063financial troubles in \u200dpart to\u200d high inflation and shifting consumer behavior \u2062influenced \u200bby &#8220;Bidenomics.&#8221; While the exact term \u200cwas not used in their filing, the company noted that \u200drising\u2064 costs\u200d have affected its core\u2063 customers, leading to reduced\u200c discretionary spending. <\/p>\n<p>As part of the bankruptcy process, Nexus\u200d Capital, a\u200c <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/report-hunter-biden-still-owns-stake-in-chinese-equity-firm\/\" title=\"Report: Hunter Biden still owns stake in Chinese equity firm\">private equity firm<\/a>, is set to acquire almost all of Big Lots&#8217; stores, which may result in the closure \u200dof approximately \u200c300 locations. Although there is potential for a higher\u200d bidder to emerge, experts suggest this is unlikely due to time \u2063constraints. Big Lots\u2062 has secured over $700 million\u200b in new funding to \u2062maintain operations during\u2062 this transition\u200b and is focusing on optimizing its store footprint to enhance\u200c profitability. <\/p>\n<p>CEO \u2062Bruce Thorn emphasized that \u200cthese actions are part of \u200ba strategy to improve the company&#8217;s performance and financial stability. The retailer blamed\u2063 broader economic issues\u200b for its struggles, noting that while inflation may appear\u2063 stabilized, salaries have not kept pace, \u200band\u200d consumer spending remains tight. \u200cThe broader retail landscape reflects this trend, with dollar stores facing declines while larger chains like Walmart and Amazon thrive despite challenges in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/for-the-love-of-all-that-is-holy-stop-backing-into-parking-spaces\/\" title=\"For The Love Of All That Is Holy, Stop Support Into Parking Spaces\">casual dining establishments<\/a>. <\/p>\n<p>Big Lots is navigating\u200b significant financial \u200dchallenges, focusing on\u200c restructuring and operational efficiency amid \u200deconomic pressures.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<section> <script>console.log(\"ad slot (IC1)\")<\/script><script>console.log(\"ad slot (IC2)\")<\/script><script>console.log(\"ad slot (IC3)\")<\/script><script>console.log(\"ad slot (IC4)\")<\/script><\/p>\n<p>Big Lots is in big trouble &mdash; and they say Bidenomics, in part, is to blame.<\/p>\n<p>Oh, that exact word didn&rsquo;t appear anywhere in the discount retailer&rsquo;s <a href=\"https:\/\/www.westernjournal.com\/bidenomics-national-burger-chain-considers-chapter-11-bankruptcy\/\" target=\"_blank\" rel=\"noopener\">Chapter 11 bankruptcy<\/a> filing on Monday. However, the retailer, which operates roughly 1,400 outlets, cited high inflation and subsequent changes in consumer patterns as reasons for the filing, <a href=\"https:\/\/edition.cnn.com\/2024\/09\/09\/business\/big-lots-chapter-11-bankruptcy\/index.html\" target=\"_blank\" rel=\"noopener\">CNN<\/a> reported.<\/p>\n<p>The filing will likely see a private equity firm, Nexus Capital, acquire &ldquo;substantially all&rdquo; of the Big Lots stores and close roughly 300 of them.<\/p>\n<p>However, since Nexus is a so-called &ldquo;stalking horse bidder&rdquo; &mdash; i.e., a low locked-in bid that acts as a sort of reserve in bankruptcy proceedings &mdash; another higher bidder could potentially emerge to take over the company&rsquo;s operations.<\/p>\n<p>However, Sarah Foss of financial publication Debtwire said it was &ldquo;unlikely that another bidder will emerge&rdquo; due to the short timeline; a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ariz-attorney-general-seeks-temporary-restraining-order-on-bidens-vaccine-mandate\/\" title=\"Ariz. Attorney General seeks temporary restraining order on Biden\u2019s vaccine mandate\">news release stated<\/a> that &ldquo;if Nexus is deemed the winning bidder, the parties anticipate closing the transaction during the fourth quarter of 2024.&rdquo;<\/p>\n<p>  <script> \t\t\t\tif( ! getCookie( 'ff_subbed' ) ) if( typeof FFADS.replace_ict !='undefined' ) if( FFADS.replace_ict ) eval( FFADS.replace_ict ); \t\t\t<\/script> <\/p>\n<p>The 57-year-old Big Lots has received over $700 million in fresh funding and all stores not slated to be closed will remain open during the process.<\/p>\n<p>&ldquo;We also intend to continue optimizing our store footprint during the process. Though most of our stores are profitable, and we are taking every step possible to improve the profitability of all our stores, we will need to close certain locations to ensure that our business operates efficiently and we can continue serving our customers,&rdquo; the retailer said in a <a href=\"https:\/\/www.bigstepforbiglots.com\" target=\"_blank\" rel=\"noopener\">statement<\/a>.<\/p>\n<p>Big Lots added: &ldquo;Taken together, these actions are intended to accelerate our efforts to improve our performance and strengthen our business for the future.&rdquo;<\/p>\n<p>&ldquo;The actions we are taking today will enable us to move forward with new owners who believe in our business and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/stimulus-check-update-direct-monthly-payment-worth-1000-to-arrive-for-los-angeles-county-residents-in-eight-days\/\" title=\",000 monthly payment for LA County residents arriving in 8 days.\">provide financial stability<\/a>, while we optimize our operational footprint, accelerate improvement in our performance, and deliver on our promise to be the leader in extreme value,&rdquo; said Big Lots CEO Bruce Thorn.<\/p>\n<p>In the <a href=\"https:\/\/cdn.prod.website-files.com\/66c741bffcbdefa71ddd84c8\/66de632f8945e61eaf0d18c9_Big%20Lots%2C%20Inc.%20Enters%20Into%20Sale%20Agreement%20With%20Nexus%20Capital%20Management%20LP.pdf\" target=\"_blank\" rel=\"noopener\">news release<\/a>, Big Lots blamed economic factors beyond its control for the company&rsquo;s <a href=\"https:\/\/www.westernjournal.com\/promising-electric-vehicle-company-crashes-burns-files-bankruptcy\/\" target=\"_blank\" rel=\"noopener\">bankruptcy filing<\/a>.<\/p>\n<p>&ldquo;Like many other retail businesses, the Company has been adversely affected by recent macroeconomic factors such as high inflation and interest rates that are beyond its control,&rdquo; the release read. &ldquo;The prevailing economic trends have been particularly challenging to Big Lots, as its core customers curbed their discretionary spending on the home and seasonal product categories that represent a significant portion of the Company&rsquo;s revenue.&rdquo;<\/p>\n<p>In addition, CNN noted in its report, consumers are &ldquo;seeking out value &ndash; but not necessarily lower costs.&rdquo;<\/p>\n<p>&ldquo;That&rsquo;s why dollar stores have been struggling while sales at Walmart and Amazon have been booming. It&rsquo;s also why McDonald&rsquo;s has been struggling while casual chains like Applebee&rsquo;s have been growing.&rdquo;<\/p>\n<p>Even so, as <a href=\"https:\/\/edition.cnn.com\/2024\/05\/11\/business\/applebees-chilis-mcdonalds-prices\/index.html\" target=\"_blank\" rel=\"noopener\">CNN<\/a> noted, sit-down restaurants like Applebee&rsquo;s have been forced to drive a hard bargain to get customers in the door &mdash; something that has backfired for other chains, like Red Lobster, <a href=\"https:\/\/www.westernjournal.com\/red-lobster-files-bankruptcy-announces-stalking-horse-sale\/\" target=\"_blank\" rel=\"noopener\">which was also forced<\/a> into a &ldquo;stalking-horse&rdquo; bankruptcy filing after attempts to increase foot traffic led to supersized order of red ink.<\/p>\n<p>In other words, this is Bidenomics in action. And, now that we now know that the top half of the ticket isn&rsquo;t going to be looking for another term in office, we can start calling it Kamalanomics, as well. After all, she&rsquo;s the &ldquo;last person in the room&rdquo; <a href=\"https:\/\/www.westernjournal.com\/kamalas-failures-exposed-4-biden-admin-catastrophes-overseen-vice-president-harris\/\" target=\"_blank\" rel=\"noopener\">when Biden makes a decision<\/a>, right?<\/p>\n<p>Even if inflation seems &ldquo;tamed&rdquo; on paper, salaries haven&rsquo;t caught up. Discretionary spending is still tight, and the jobs market hasn&rsquo;t exactly been on fire.<\/p>\n<p>This is what the &ldquo;joy&rdquo; and &ldquo;vibes&rdquo; campaign wants you to sign up for another four years of: having to pinch pennies so tightly that even Big Lots is out of the equation.<\/p>\n<p>Hasn&rsquo;t America suffered enough?<\/p>\n<div style=\"position: relative;\">\n<div class=\"ff-fancy-header-container\">  <\/div>\n<div class=\"entry-submit-correction inner-content\">\n<div class=\"correction-form\">\n<form style=\"display: none;\">\n<div class=\"sc-name-field\"> <label>* Name<\/label> <br \/> <input type=\"text\" name=\"name\" required> <\/div>\n<div class=\"sc--field\"> <label>* <\/label> <br \/> <input type=\"text\" name=\"\" required> <\/div>\n<p> <label>* Message<\/label> <br \/> <textarea name=\"message\" required><\/textarea>  <\/p>\n<div class=\"required-message\" style=\"display: none; padding-bottom: 15px;\">* All fields are required.<\/div>\n<p> <input type=\"submit\" value=\"Submit\" onclick=\"event.preventDefault(); firefly_sc();\">  <\/p>\n<div class=\"firefly-sc-confirm\" style=\"display: none;\">Success!<\/div>\n<\/p><\/form>\n<\/p><\/div>\n<\/p><\/div>\n<p> <script> \t\t\tfunction firefly_sc() { \t\t\t\tif( typeof window.captchaPublicKey==typeof undefined ){ \t\t\t\t\tconsole.error('window.captchaPublicKey is not defined'); \t\t\t\t} \t\t\t\tgrecaptcha.execute( window.captchaPublicKey, { action: 'submit_correction' } ).then( function( token ) { \t\t\t\t\tvar opts={ \t\t\t\t\t\taction:    'firefly_sc_submit', \t\t\t\t\t\tname:      document.querySelector( '.entry-submit-correction [name=\"name\"]' ).value, \t\t\t\t\t\t:     document.querySelector( '.entry-submit-correction [name=\"\"]' ).value, \t\t\t\t\t\tmessage:   document.querySelector( '.entry-submit-correction [name=\"message\"]' ).value, \t\t\t\t\t\tpost_id:   firefly_post_id, \t\t\t\t\t\tcap_token: token \t\t\t\t\t}  \t\t\t\t\tvar inputs=[ 'name', '', 'message' ];  \t\t\t\t\tfor( var i=0; i <inputs.length; i++ ) if( ! ( opts[inputs[i]]=document.querySelector( '.entry-submit-correction [name=\"' + inputs[i] + '\"]' ).value ) ) { \t\t\t\t\t\tdocument.querySelector( '.entry-submit-correction .required-message' ).style.display='block'; \t\t\t\t\t\treturn; \t\t\t\t\t}  \t\t\t\t\tdocument.querySelector( '.entry-submit-correction input[type=\"submit\"]' ).style.display='none'; \t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-submitting-img' ).src=firefly_loading_gif_url; \t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-submitting-img' ).style.display='inline-block';  \t\t\t\t\tconsole.log( 'ma subbing' );  \t\t\t\t\tif( firefly_post_id ) opts['post_id']=firefly_post_id;  \t\t\t\t\t\/* Send the data using post with element id name and name2*\/ \t\t\t\t\tvar posting=jQuery.post( firefly_ajax_url, opts );  \t\t\t\t\t\/* Alerts the results *\/ \t\t\t\t\tposting.done( function( response ) { \t\t\t\t\t\tif( response.success ) { \t\t\t\t\t\t\tconsole.log( response.data ); \t\t\t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-submitting-img' ).style.display='none'; \t\t\t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-confirm' ).style.display='block';  \t\t\t\t\t\t\tdataLayer.push( { 'event': 'submit-correction' } ); \t\t\t\t\t\t} \t\t\t\t\t}); \t\t\t\t}); \t\t\t} \t\t<\/script>  <\/div>\n<p style=\"border: 1px solid #f5f5f5;\">Advertise with The Western Journal and reach millions of highly engaged readers, while supporting our work. <a href=\"https:\/\/www.westernjournal.com\/advertise-us\/\">Advertise Today<\/a>.<\/p>\n<p><script>console.log(\"ad slot (BA1)\")<\/script> <\/p>\n<div class=\"ff-fancy-header-container\">  <\/div>\n<style> \t\t\t \t\t\t.insticator-unit.type-commenting{margin: 0 10px 25px 10px}@media screen and (max-width:1060px){#div-insticator-ad-cmt-1, #div-insticator-ad-cmt-2, #div-insticator-ad-cmt-3, #div-insticator-ad-cmt-4{margin: 0 auto 25px auto !important;}}#div-insticator-ad-cmt-1, #div-insticator-ad-cmt-2, #div-insticator-ad-cmt-3, #div-insticator-ad-cmt-4{height: 280px !important; width: 336px !important} \t\t<\/style>\n<div class=\"insticator-unit type-commenting\">\n<div class=\"insticator-ads\">   <script data-cfasync=\"false\" type=\"text\/javascript\"> \t\t\t\t\tif ( ! getCookie( \"ff_subbed\" ) ) { \t\t\t\t\t\tInsticator.ad.loadAd(\"div-insticator-ad-cmt-1\"); \t\t\t\t\t\tInsticator.ad.loadAd(\"div-insticator-ad-cmt-2\"); \t\t\t\t\t} else { \t\t\t\t\t\tdocument.getElementById(\"div-insticator-ad-cmt-1\").remove() \t\t\t\t\t\tdocument.getElementById(\"div-insticator-ad-cmt-2\").remove() \t\t\t\t\t} \t\t\t\t<\/script> <\/div>\n<div class=\"insticator-ads additional\">   <script data-cfasync=\"false\" type=\"text\/javascript\"> \t\t\t\t\tif ( ! getCookie( \"ff_subbed\" ) ) { \t\t\t\t\t\tInsticator.ad.loadAd(\"div-insticator-ad-cmt-3\"); \t\t\t\t\t\tInsticator.ad.loadAd(\"div-insticator-ad-cmt-4\"); \t\t\t\t\t} else { \t\t\t\t\t\tdocument.getElementById(\"div-insticator-ad-cmt-3\").remove() \t\t\t\t\t\tdocument.getElementById(\"div-insticator-ad-cmt-4\").remove() \t\t\t\t\t} \t\t\t\t<\/script> <\/div>\n<\/p><\/div>\n<\/section>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Big Lots is facing significant challenges, and they attribute some of the blame to Bidenomics. While that specific term wasn&#8217;t mentioned in their Chapter 11 bankruptcy filing on Monday, the company, which has around 1,400 stores, pointed to high inflation and shifts in consumer behavior as contributing factors. According to CNN, a private equity firm named Nexus Capital is expected to acquire &#8220;substantially all&#8221; of Big Lots&#8217; locations while closing about 300 of them. However, since Nexus is acting as a &#8220;stalking horse bidder,&#8221; meaning they have made a low bid that serves as a baseline during bankruptcy proceedings, there could be other higher bidders interested in taking over the company&#8217;s operations. Financial expert Sarah Foss from Debtwire indicated that it\u2019s unlikely another bidder will come forward due to the tight timeline; if Nexus wins the bid, they anticipate finalizing the deal by late 2024.<\/p>\n<p>Big Lots has secured over $700 million in new funding and plans to keep all stores not marked for closure operational throughout this process. The retailer stated its intention to optimize its store presence while acknowledging that although most locations are profitable, some will need to close for operational efficiency and customer service continuity. They emphasized that these measures aim to enhance performance and strengthen their business moving forward.<\/p>\n<p>In their announcement regarding bankruptcy, Big Lots cited uncontrollable economic factors impacting their situation: \u201cLike many other retail businesses&#8230; we have been adversely affected by recent macroeconomic factors such as high inflation and interest rates.\u201d These trends have particularly impacted Big Lots because its primary customers are reducing discretionary spending on home goods and seasonal items\u2014key revenue sources for the company.<\/p>\n<p>CNN also highlighted how consumers are looking for value rather than just lower prices; this explains why dollar stores struggle while sales at Walmart and Amazon thrive. Similarly, casual dining chains like Applebee&#8217;s are doing well despite sit-down restaurants like McDonald&#8217;s facing difficulties due to aggressive pricing strategies leading others into financial trouble.<\/p>\n<p>This scenario reflects what some refer to as Bidenomics at work\u2014and with indications that President Biden may not seek re-election again soon; it might be time for people to start calling it Kamalanomics too since she plays a crucial role in decision-making alongside him. Despite claims of stabilizing inflation on paper, wages haven&#8217;t kept pace with rising costs; discretionary spending remains constrained amid a sluggish job market.<\/p>\n<p>The current administration&#8217;s approach seems aimed at encouraging Americans toward another four years characterized by financial strain\u2014evidenced by even discount retailers like Big Lots struggling significantly under these conditions. Hasn&#8217;t America endured enough hardship already<\/p>\n","protected":false},"author":1,"featured_media":2339121,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2024\/09\/big-lots.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[7740,40539,40538,34849,33086],"class_list":["post-2339120","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-bankruptcy","tag-big-lots","tag-high-inflation","tag-retail-industry","tag-store-closures"],"fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2024\/09\/big-lots.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2339120","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2339120"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2339120\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2339121"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2339120"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2339120"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2339120"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}