Discount home goods retailer Big Lots announced on Monday that it has secured $707.5 million in funding to support its operations while undergoing Chapter 11 bankruptcy proceedings. The company is also preparing to sell itself to private equity firm Nexus Capital.
According to a filing with the Delaware bankruptcy court, Big Lots has estimated its assets and liabilities to fall within the $1 billion to $10 billion range, with creditors numbering between 5,001 and 10,000.
Nexus Capital will act as the “stalking horse bidder” in a court-supervised auction process, a role that establishes a baseline offer for the sale. The final transaction is expected to be completed in the fourth quarter of 2024, provided Nexus is selected as the winning bidder.
The term “stalking horse bid” refers to an initial bid intended to set a minimum price for the asset or company, prompting other potential buyers to submit higher offers.
Big Lots reported that its second-quarter performance aligns with prior guidance. The company plans to release its complete second-quarter financial results on September 12, having previously rescheduled from September 6.
Operating approximately 1,400 stores across the U.S. and employing over 30,000 staff, Big Lots has faced ongoing sales declines in recent quarters, which have strained its financial stability.
