:max_bytes(150000):strip_icc()/GettyImages-2165823902-129bbded011f4b76aaf7f5bf98713e64.jpg "Big Lots Files for Bankruptcy, Agrees To Private-Equity Takeover")
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KEY TAKEAWAYS
- Big Lots filed for Chapter 11 bankruptcy protections and agreed to sell itself to an affiliate of private-equity firm Nexus Capital Management.
- The filing by the home goods and furniture retailer follows extended sales declines and several quarters of losses at the discount retailer.
- The Ohio-based firm said Nexus will serve as the “stalking horse bidder” in a court-supervised auction process, and that the deal will close in the fourth quarter if it doesn’t get better offers.
Big Lots (BIG) filed for Chapter 11 bankruptcy protections and agreed to sell itself to an affiliate of private-equity firm Nexus Capital Management, following extended sales declines and several quarters of losses at the discount retailer.
The Ohio-based firm said Nexus will serve as the “stalking horse bidder” in a court-supervised auction process, and that the deal will close in the fourth quarter if it doesn’t get better offers.
Big Lots To Close Some Stores
The discount home goods and furniture retailer has been hit by a more cautious consumer holding back on big spending. The company said it will be “continuing to assess its operational footprint,” including closing some store locations.
Big Lots said Monday it has secured commitments for $707.5 million of financing, which along with its cash from ongoing operations should give it enough liquidity to support it while it completes the sale.