Big Lots Prepares to Go Out of Business
Embattled Big Lots Inc. has announced that it no longer expects to complete its asset purchase agreement with Nexus Capital Management LP and is initiating going-out-of-business sales at all of its remaining stores. Despite the planned sales, Big Lots says it is still working toward completing an alternative going concern transaction with Nexus or another party.
According to Big Lots, the going-out-of-business sales will not preclude it from initiating a going concern transaction and completing a sale by early January.
"We all have worked extremely hard and have taken every step to complete a going concern sale,” said Big Lots President and CEO Bruce Thorn. “While we remain hopeful that we can close an alternative going concern transaction, in order to protect the value of the Big Lots estate, we have made the difficult decision to begin the GOB process."
In September, Big Lots entered into a sale agreement with an affiliate of investment firm Nexus Capital Management LP, under which Nexus agreed to acquire substantially all of the company’s assets and ongoing business operations. To ease the transaction, Big Lots, along with each of its subsidiaries, initiated voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware.
The month prior, it was revealed that the discounter would close up to 315 stores under amended credit and loan terms. Since then, bids have been accepted on hundreds of shuttered Big Lots stores, with Ollie’s Bargain Outlet Holdings Inc. recently acquiring 170 Big Lots stores as part of a bankruptcy auction.
Columbus, Ohio-based Big Lots Inc. operates more than 1,000 stores in 48 states, as well as an e-commerce platform with expanded fulfillment and delivery capabilities. The company is No. 59 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America.
