September 11, 2024
Big Lots DIP filed a voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the District of Delaware. The Company entered into an agreement with an affiliate of Nexus Capital Management LP, under which Nexus has agreed to acquire substantially all of the Company's assets and ongoing business operations. The Chapter 11 filing will facilitate this process. During the proceedings, Big Lots will continue to serve customers at stores and online.
The Company operates over 1,300 stores in 48 states in the U.S. Prior to filing, the Company commenced the process of closing 295 stores. So far less than 100 have closed, with additional stores to be closed in the coming months. See our Retail Openings & Closings map below for locations of these future closures.
Earlier this year, Macy’s announced plans to close 150 locations through 2026, including an estimated 50 stores this year. That estimate was increased to 55 stores last week. Macy’s said the accelerated timeline is actually good news as it seeks to monetize the store closures through real-estate deals. CFO Adrian Mitchell stated, “The punchline here is we’re very pleased with the traction and progress.”
The below map shows where Macy's stores are located across the U.S. The Real Estate Intelligence chart below compares store visit analytics for a lower performing (Glen Cove, NY) and higher performing (Short Hills, NJ) Macy's location, as well as the average across Macy's locations.
In the Blink Holdings, DIP case, the Creditors’ Committee filed an objection to the DIP Facility, alleging it is unfair to unsecured creditors. The DIP Facility provides $21 million in new money loans and rolls up $52.5 million of prepetition debt.
The Debtors closed 23 locations since the petition date (see the adjacent map for those locations), with 78 locations currently open and operating.
On September 3, Rite Aid announced that it has successfully completed its financial restructuring and emerged from Chapter 11. During the reorganization process, Rite Aid closed hundreds of underperforming stores. See the adjacent chart for the Company's store count contraction between November 2023 and August 2024. In connection with emergence, Rite Aid will operate as a private company.
Red Lobster, DIP received court approval for its Chapter 11 plan, which will allow it to be acquired by RL Investor Holdings, LLC, a newly-created entity backed by Fortress Investment Group. Red Lobster will continue to operate as an independent company, with 544 locations across 44 U.S. states and four Canadian Provinces. Red Lobster has shuttered 96 restaurants since May. See the chain's remaining locations in the adjacent map.
Sweetgreen opened a 3,600 square-foot location in Columbus, OH on September 4, its first store in Ohio. The Company said that Columbus was one of the most requested cities for the chain to expand into. For 2024, the chain expects to open 24 to 26 new restaurants. Sweetgreen operates more than 230 restaurants across the U.S. See Sweetgreen's current locations in the adjacent map as well as the new Columbus store (in blue).
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