Big Lots files for bankruptcy, accepts sale to Nexus Capital

(Bloomberg) — Discount retailer Big Lots Inc. (BIG) has filed for bankruptcy protection and plans to sell the company’s assets and ongoing businesses in a court-supervised process.

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The Columbus, Ohio-based company said it has filed for Chapter 11 bankruptcy in Delaware, according to a company statement. She listed assets and liabilities of $1 billion to $10 billion in her court petition. Chapter 11 allows a company to continue operating while it works out a plan to repay creditors.

Big Lots sought court protection after suffering years of declining same-store sales and location closures. According to the retailer’s announcement, it has entered into a sales agreement with an affiliate of private equity investor Nexus Capital Management LP. Under the agreement, Nexus will serve as the “stalking horse bidder,” meaning that unless higher or better offers come in from other parties, Nexus will buy the business.

Big Lots expects the transaction to close in the fourth quarter of 2024, if Nexus remains the winning bidder, the statement added.

The retailer has secured $707.5 million in financing commitments under a post-petition credit facility, according to the company. As a result, Big Lots expects to have sufficient liquidity as it works to complete the sale transaction, it said.

Big Lots is among a number of struggling retailers that have been hit by a slowdown in housing spending. Conn’s Inc. Retailers and LL Flooring Holdings Inc. have also filed for bankruptcy in recent months.

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