Big Lots sells business to Nexus Capital as bankruptcy proceedings begin By Reuters

(Reuters) – U.S. discount home goods retailer Big Lots (NYSE: ) said on Monday it secured $707.5 million to shore up its operations and sell the business to private equity firm Nexus Capital , as it filed for Chapter 11 bankruptcy.

Big Lots listed its assets and liabilities in the range of $1 billion to $10 billion, according to a Delaware bankruptcy court filing that showed creditors in the range of 5,001-10,000.

Nexus will serve as a “stalker bidder” in a court-supervised bidding process, Big Lots said, adding that the deal will close in the fourth quarter of 2024 if Nexus is deemed the winning bidder.

A stalking horse bid is used as a starting or minimum accepted bid that other interested bidders must beat if they want to buy the asset or company.

Big Lots said its second-quarter results were in line with guidance. The company will release its full Q2 results on September 12, after previously postponing it from September 6.

Big Lots, a retailer that operates about 1,400 stores in the U.S. and employs more than 30,000 people, has faced declining sales in recent quarters, putting pressure on its balance sheet.