Big Lots says it will hold going-out-of-business sales at its remaining stores as it tries to find a buyer

• Big Lots said Thursday it does not expect to close the deal to sell itself to a private equity firm.
• The company will hold going-out-of-business sales at remaining stores as it looks for a new buyer.
• More than 300 stores are slated to close across 41 states.

The fate of Big Lots is getting down to the wire.

The discount retailer said Thursday that it will hold going-out-of-business sales at its remaining stores as it does not expect to close its sale to private equity firm Nexus Capital Management.

However, it is not officially going out of business.

"While we remain hopeful that we can close an alternative going concern transaction, in order to protect the value of the Big Lots estate, we have made the difficult decision to begin the GOB process," CEO Bruce Thorn said in a statement.

The company did not specify why the deal — which was worth roughly $750 million and had received court approval in November — fell through.

Big Lots said it does not expect the going-out-of-business sales will preclude it from negotiating a new deal, which it hopes to achieve by early January.

In addition to its announcement, Big Lots added 100 new locations to its list of more than 200 closing stores, which has been growing since it filed for bankruptcy protection in September. The fleet previously counted nearly 1,400 stores across the US.

Business Insider visited one location before it was included on this latest list and found empty shelves, an unusual assortment of merchandise, and few actual bargain prices.

Big Lots positions itself as a store to find great deals, which it offers by sourcing products at low costs from suppliers and other retailers.

But declining sales, a growing mountain of debt, financial losses, and a high percentage of underperforming stores have put the company's future in doubt.

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