In a bid to facilitate an expected acquisition and reclaim its position as America's leading extreme value retailer, Big Lots has announced voluntary Chapter 11 bankruptcy proceedings along with plans to close additional stores. The discount retail chain has entered into a sale agreement with an affiliate of Nexus Capital Management, which aims to help revitalize the iconic brand.

Last month, Big Lots had already revealed the closure of over 300 stores, including 10 in New York state. While closure dates for these stores have not yet been announced, going-out-of-business sales are currently underway in various locations including Buffalo, Canandaigua, Ithaca, New Hartford, Plattsburgh, and Poughkeepsie.

While Monday's announcement did not disclose the specific locations of the additional stores to be closed, Big Lots is already set to shutter at least 25% of its total U.S. footprint. At the beginning of 2023, the company operated over 1,400 stores nationwide.

Bruce Thorn, President and CEO of Big Lots, mentioned that although the majority of their store locations are profitable, the decision to focus on a more streamlined footprint is aimed at ensuring operational efficiency and improving customer service. The company intends to utilize the tools provided by the bankruptcy process to strategically optimize its store fleet.

With an existing network of 50 operating locations in New York state, Big Lots remains committed to providing extreme bargains, convenient in-store and online shopping experiences, and excellent customer service. Thorn expressed gratitude for the loyalty of their customers and emphasized the dedication of their associates and partners during this transitional period.

Big Lots' decision to file for bankruptcy and initiate these store closures comes as the company faces challenges arising from a difficult consumer environment and decreased spending by their core customers. This has resulted in a decline in stock prices, with shares listed at 50 cents last week, down from over $70 in 2021.

As Big Lots moves forward under new ownership and looks to bounce back, the company aims to adapt its business strategy to better meet the needs of consumers and regain its position as America's leading extreme value retailer.