Big Lots’ sale to private equity firm approved by bankruptcy court
Big Lots is ready for its next chapter.
The off-price retailer said it has received court approval for the sale of substantially all of its assets and ongoing business operations to an affiliate of private equity firm Nexus Capital Management LP. The sale is expected to close in early December.
In September, Big Lots filed for bankruptcy protection as part of a deal to be acquired for about $760 million by Nexus. The retailer, which has struggled in recent years with declining sales, listed assets and liabilities of $1 billion to $10 billion in its bankruptcy petition.
"Today's approval paves the way for a new phase for Big Lots, during which we intend to reclaim our position as the undisputed leader in extreme value,” said president and CEO Bruce Thorn. “Partnering with Nexus, which believes in our business and long-term potential, will ensure that Big Lots is best positioned to emerge as a stronger company for 2025 and beyond.”
In September, Big Lots said it planned on closing more than 340 of its 1,500 stores. Since then, the retailer has announced additional closures. According to reports, the company has shuttered approximately 500 stores.
"Nexus's acquisition of Big Lots is a testament to our confidence in the company's core proposition and growth prospects,” said Evan Glucoft, managing director of Nexus. “We strongly believe that Big Lots is on the brink of capitalizing on its potential, and we look forward to working with the talented Big Lots team to accelerate its mission and realize the opportunities ahead."
Davis Polk & Wardwell LLP is serving as legal counsel, Guggenheim Securities, LLC is serving as financial advisor, AlixPartners LLP is serving as restructuring advisor. A&G Real Estate Partners is serving as real estate advisor to the Company. Kirkland & Ellis is serving as legal counsel to Nexus.
