Big Lots Files for Chapter 11 Bankruptcy, Agrees to $620 Million Sale to Nexus Capita

[Sanjeev Advani]

Big Lots has filed for Chapter 11 bankruptcy and agreed to a $620 million sale to Nexus Capital Management. The deal is part of the retailer's plan to restructure and focus on profitability by 2025. Nexus Capital will serve as the stalking-horse bidder, acquiring most of Big Lots' assets and operations.

The company, known for selling home goods through closeouts and liquidations, secured $707.5 million in financing to support operations during the bankruptcy process. CEO Bruce Thorn noted Big Lots would close underperforming stores and focus on optimizing its store fleet. The retailer previously announced plans to shut up to 315 locations.

Big Lots joins several other retailers, like LL Flooring and 99 Cents Only, in filing for bankruptcy as the industry grapples with inflation and changing consumer habits. Nexus Capital sees potential in Big Lots, and the sale is expected to close by the end of 2024.