Big Lots, a well-known discount retailer, has filed for Chapter 11 bankruptcy in Delaware.
The company, based in Columbus, Ohio, listed its assets and liabilities between $1 billion and $10 billion.
This filing allows Big Lots to keep operating while it plans to sell its business and assets under court supervision, with Nexus Capital Management LP lined up as the initial bidder.
This situation reflects a broader trend of economic trouble that extends beyond just one company.
Recently, S&P Global Market Intelligence reported a surge in corporate bankruptcies, reaching a 13-year high.
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The first half of 2024 alone saw 346 companies go bankrupt, a distressing number reminiscent of the economic fallout following the 2008 financial crisis.
This uptick in corporate bankruptcies shows just how bad Biden-Harris economic policies, often referred to as “Bidenomics,” have been for companies and for the average consumer.
U.S. discount retail chain Big Lots filed for bankruptcy, the latest retail casualty as consumers rein in spending https://t.co/pVLJIey4x2 https://t.co/pVLJIey4x2
— The Wall Street Journal (@WSJ) September 9, 2024
Big Lots’ troubles are partly due to internal issues and partly due to broader economic policies.
The retailer has struggled with falling sales and had to shut some stores.
The current economic policies have led to high inflation and market instability, affecting many businesses.
Rising interest rates, supply chain problems, and decreased consumer spending are immediate concerns that have hit companies hard, including Big Lots.
In addition to these external pressures, Big Lots has also seen a decline in the quality of customer experience over the years, which has further hurt its business.
When a company fails to meet its customers’ needs, it risks falling behind, which is precisely what happened with Big Lots.
This bankruptcy is not an isolated incident but part of a troubling pattern across various industries.
UNREAL. Manager at Big Lots @BigLots Pat Guider was FIRED after working there for over 20 years because he followed a shoplifter who has assaulted an employee and called the police.
You can’t make this uppic.twitter.com/QHnC9TdBu1
— Libs of TikTok (@libsoftiktok) June 9, 2024
The consumer discretionary sector has been the hardest hit, with 55 bankruptcies this year alone.
Even sectors like healthcare and industrial are not immune, with each reporting 40 bankruptcies so far in 2024.
These figures underscore the widespread impact of the current economic policies, which seem to destabilize rather than support U.S. businesses.
As Big Lots moves through bankruptcy with a potential sale to Nexus Capital, which has provided a financial lifeline of $707.5 million in credit, the future remains uncertain.
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This situation will be a critical test of whether Big Lots can regain stability or if it will become another casualty in a growing list of businesses unable to withstand the economic strain.
