Big Lots Gets DIP Loan From Gordon Brothers
Bankrupt retailer Big Lots has received a $150 million debtor-in-possession (DIP) term loan from Gordon Brothers.
The retailer will use the loan during its ongoing Chapter 11 bankruptcy proceedings to support its going-concern sale and stalking horse bid. In early September, Big Lots filed for Chapter 11 bankruptcy protection and agreed to sell its assets to Nexus Capital Management.
“Having established a working relationship with Big Lots over the last few years, and having previously provided a $200 million delayed draw term loan, we continue to provide a full suite of holistic services for a complete solutions-driven package,” said Kyle C. Shonak, senior managing director with Gordon Brothers. “As the liquidation agent for the non-go forward store closures, distribution centers and the furniture, fixtures and equipment, we’ll continue to support the company during the sale process.”
A month prior to its bankruptcy filing, Big Lots announced the closure of more than 300 stores. While no formal press announcement was made regarding its downsizing, the retailer outlined its plans in a filing with the Securities and Exchange Commission.
