Askume, Sept 9 – U.S. discount home furnishings retailer Big Lots (BIG.N) said on Monday it has begun bankruptcy proceedings under Chapter 11 of the U.S. Bankruptcy Code, has secured $707.5 million to support its operations and has sold its business to private equity firm Nexus Capital.
Big Lots has assets and liabilities ranging from $1 billion to $10 billion and a list of creditors ranging from 5,001 to 10,000, according to documents filed in Delaware bankruptcy court.
Big Lots said Nexus would act as a “track bidder” during the court-supervised auction, and added that if Nexus is deemed the winning bidder, the deal would close in the fourth quarter of 2024.
The follow-on bid is used as the opening bid or the minimum accepted bid, which other interested bidders must surpass if they want to purchase the property or company.
Big Lots said second-quarter results were in line with guidance. The company will release full second-quarter results on Sept. 12 after delaying them until Sept. 6.
Big Lots, a retailer that operates nearly 1,400 stores in the United States and employs more than 30,000 people, has struggled with declining sales over the past few quarters, which has put pressure on its balance sheet.
