Big Lots Sets Going Out Of Business Sales
Big Lots will begin going out of business sales at its remaining stores as a previously announced purchase agreement with Nexus Capital Management has fallen through.
Company officials said the decision was made to protect the value of its estate, but the decision will not preclude it from effectuating a going concern transaction.
"We all have worked extremely hard and have taken every step to complete a going concern sale,” said Bruce Thorn, president and CEO of Big Lots. “While we remain hopeful that we can close an alternative going concern transaction, in order to protect the value of the Big Lots estate, we have made the difficult decision to begin the (going out of business) process."
The retailer is continuing to serve customers in-store and online and will provide updates as available. It was not immediately clear why the deal between Big Lots and Nexus fell through.
The decision to commence going out of business sales comes more than three months after Big Lots filed for Chapter 11 bankruptcy protection. At the time of the filing, the retailer said it agreed to sell its assets to Nexus Capital Management.
Under the terms of the Sale Agreement, Nexus was a "stalking horse bidder" in a court-supervised auction. Accordingly, the proposed transaction was subject to higher or otherwise better offers, court approval, and other conditions. Under the sale agreement, if Nexus was deemed the winning bidder, the transaction was expected to close in the fourth quarter.
In August, the retailer announced the closure of more than 300 stores as Big Lots worked to downsize from the 1,400 stores it operated across the U.S.
