Large lots file for bankruptcy, accept private equity takeover

KEY PRINCIPLES

• Big Lots filed for Chapter 11 bankruptcy protection and agreed to sell itself to an affiliate of private equity firm Nexus Capital Management.

• The home goods and furniture retailer’s filing follows extended sales declines and several quarters of losses at the discount retailer.

• The Ohio-based firm said Nexus will serve as a “stalker bidder” in a court-supervised bidding process and that the deal will close in the fourth quarter if it does not receive better offers.

Large lots (GREAT) filed for Chapter 11 bankruptcy protection and agreed to sell itself to an affiliate of private equity firm Nexus Capital Management following extended sales declines and several quarters of losses at the discount retailer .

The Ohio-based firm said Nexus will serve as a “stalker bidder” in a court-supervised bidding process and that the deal will close in the fourth quarter if it does not receive better offers.

Large lots to close some stores

The discount home goods and furniture retailer has been hit by a more cautious consumer who is holding back on big spending. The company said it will “continue to evaluate its operational footprint,” including closing some store locations.

Big Lots said Monday it had secured $707.5 million in financing commitments, which, along with cash from ongoing operations, should give it enough liquidity to sustain it as it completes the sale.

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