Big Lots Inc., a U.S. discount home goods retailer, said Monday it has secured $707.5 million to shore up its operations and sold its business to private equity firm Nexus Capital as it begins Chapter 11 bankruptcy proceedings.
Big Lots listed its assets and liabilities in the range of $1 billion to $10 billion, according to a filing with Delaware bankruptcy court, which showed creditors ranging from 5,001 to 10,000.
Big Lotus said Nexus will act as a “Trojan horse” in the court-supervised auction process, adding that the deal will close in the fourth quarter of 2024 if Nexus is deemed the winning bidder.
A stalking horse offer is used as a starting or minimum acceptable offer that other interested bidders must exceed if they want to purchase the assets or the company.
Big Lots said second-quarter results were in line with guidance. The company will release full second-quarter results on Sept. 12, after previously delaying them from Sept. 6.
Big Lots, a retailer that operates about 1,400 stores across the United States and employs more than 30,000 workers, has been suffering from declining sales over the past few quarters, putting pressure on its balance sheet.