Columbus-based discount retailer Big Lots, Inc. has agreed to sell substantially all of its assets and ongoing operations to Los Angeles-based private equity firm Nexus Capital Management, which has agreed to act as the stalking horse bidder.
The sale agreement follows Big Lots' voluntary filing for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware. The company and its subsidiaries initiated the proceedings to facilitate the transaction and restructure its operations.
Nexus Capital Management has agreed to act as the stalking horse bidder through a Court-supervised marketing process. Big Lots plans to continue that process through Chapter 11 and seek a higher or otherwise better bid in a going-concern sale.
Under the agreement, Nexus will buy Big Lots' assets and business operations, while the retailer continues serving customers at its physical store locations and online throughout the bankruptcy process.
Big Lots CEO Bruce Thorn said the move would provide the company with a pathway to financial stability and operational optimization. "The actions we are taking today will enable us to move forward with new owners who believe in our business and provide financial stability," Thorn said in a statement.
The retailer has faced significant challenges in recent years due to macroeconomic pressures such as rising inflation and interest rates, which dampened discretionary spending, especially on home and seasonal products—key revenue drivers for the company. Despite efforts to improve its sales and profitability, Big Lots was hit hard by the economic downturn, leading to its decision to file for bankruptcy.
Evan Glucoft, Managing Director at Nexus Capital, expressed optimism about the partnership: "We are excited to have the opportunity to partner with Big Lots and help return this iconic brand to its status as America's leading extreme value retailer."
The sale agreement comes after Big Lots’ board conducted a strategic review of alternatives, ultimately determining that the deal with Nexus would best maximize value and ensure the company's continued operations.
The company, known for its focus on providing discounted home goods, furniture, and seasonal products, will remain operational throughout the bankruptcy process, as it works with Nexus to execute the sale and move forward with its restructuring plan.
