The discount retailer Big Lots Inc. (NYSE: BIG) has filed for Chapter 11 bankruptcy and announced the sale of its assets and business operations to an affiliate of Nexus Capital Management LP.
Under the terms of the Sale Agreement, Nexus will serve as the “stalking horse bidder” in a court-supervised auction process pursuant to section 363 of the U.S. Bankruptcy Code. The proposed sale is subject to higher or otherwise better offers, court approval, and other conditions.
In July, the financially fraying company said it was planning to close between 35 to 40 stores this year. However, with the sale announcement the company stated it would “assess its operational footprint, which will include closing additional store locations [and] will also continue to evaluate and optimize its distribution center model.”
The company has experienced losses and used cash in operating activities during 2022, 2023 and the first quarter of 2024. On Friday, it announced it was delaying the release of its second quarter data until Sept. 12.
Bruce Thorn, president and CEO of Big Lots, declared, “As we move through this process, we remain committed to offering extreme bargains, enabling easy shopping in our stores and online, and providing an outstanding customer experience. We are grateful for the hard work and dedication of our associates who remain focused on delivering the best service possible for our valued customers, and we deeply appreciate the partnership of our vendors as we start a new chapter for our business.”
Evan Glucoft, managing director of Nexus, added, “We are excited to have the opportunity to partner with Big Lots and help return this iconic brand to its status as America’s leading extreme value retailer. The Big Lots business has incredible potential and we are confident that its greatest days are ahead.”
;
