Big Lots Files for Bankruptcy

(Reuters) – U.S. discount home goods retailer Big Lots (NYSE: BIG) announced on Monday that it has secured $707.5 million to support its operations and is in the process of selling its business to private equity firm Nexus Capital, as it has initiated bankruptcy proceedings under Chapter 11.

Financial Status and Proceedings

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

Nexus will act as a “stalking horse bidder” in a court-supervised auction process. The deal is expected to close in the fourth quarter of 2024, assuming Nexus is deemed the winning bidder.

A stalking horse bid serves as a starting offer that other interested bidders must surpass to purchase the company.

Company Performance

Big Lots stated that its second-quarter results align with guidance. The full second-quarter results will be released on Sept. 12, having been postponed from Sept. 6.

Operating approximately 1,400 stores across the U.S. and employing over 30,000 workers, Big Lots has been facing declining sales over recent quarters, putting pressure on its balance sheet.