Big Lots Files for Chapter 11 Bankruptcy

Furniture World News Desk on 9/9/2024

Big Lots, Inc. announced it has entered into a sale agreement with an affiliate of Nexus Capital Management LP to acquire substantially all of the company’s assets and operations. To enable this transition, Big Lots and its subsidiaries have voluntarily filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware. Despite the restructuring, Big Lots will continue to serve customers in-store and online.

“We are proud of the work we do every day across Big Lots to provide our customers with unmistakable value and exceptional savings,” said Bruce Thorn, President and CEO of Big Lots. “The actions we are taking today will enable us to move forward with new owners who believe in our business and provide financial stability, while we optimize our operational footprint.”

Thorn also acknowledged the company’s commitment to its customers throughout this process, stating, “We remain committed to offering extreme bargains, enabling easy shopping in our stores and online, and providing an outstanding customer experience.”

Evan Glucoft, Managing Director of Nexus, added, “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.”

Business Optimization and Store Closures

As part of the court-supervised sale process, Big Lots will assess its operational footprint, including closing certain store locations and optimizing its distribution center model. Thorn noted, “Though the majority of our store locations are profitable, we intend to move forward with a more focused footprint to ensure that we operate efficiently and are best positioned to serve our customers.”

Court-Supervised Process and Interim Financing

Nexus will serve as the "stalking horse bidder" in a court-supervised auction. The transaction is subject to higher offers, court approval, and other conditions, with an anticipated closing in Q4 2024. Big Lots has secured $707.5 million in financing, including $35 million in new funding, to support operations during the restructuring. Court approval is pending to continue regular operations, including paying employees and critical vendors.

Q2 Financial Update

Big Lots reported Q2 2024 results in line with guidance. Bruce Thorn commented, “Despite a challenging consumer environment, we achieved underlying comp sales, gross margin, and operating expenses in line with our guidance.” The company anticipates further improvements in Q3.

NYSE Compliance

Big Lots also announced that it is not in compliance with NYSE’s minimum share price requirement, but the notice does not immediately affect the company’s listing.

About Big Lots, Inc.
 Big Lots is one of the nation's largest closeout retailers focused on extreme value. The Company is dedicated to being the big difference for a better life by delivering bargains to brag about on everything for the home, including furniture, décor, pantry and more. It fulfills its mission to help customers "Live BIG and Save LOTS" with sourcing strategies to grow extreme bargains through closeouts, liquidations, overstocks, private labels, and value-engineered products. The Big Lots Foundation, together with the Company's customers, associates, and vendors, has delivered more than $176 million of philanthropic support to critical needs in hunger, housing, healthcare, and education. For more information, to shop online, or to find a store near you, please visit biglots.com.