Big Lots is selling businesses to Nexus Capital as it begins bankruptcy proceedings

(Reuters) – U.S. discount home goods retailer Big Lots 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 initiated Chapter 11 bankruptcy proceedings.

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.

(Reporting by Gnaneshwar Rajan in Bengaluru; Editing by Savio D’Souza and Rashmi Aich)