Big Lots, Inc. (the “Company”) provided a significant update today regarding its ongoing court-supervised process. The company no longer anticipates completing the previously announced asset purchase agreement with Nexus Capital Management. Despite this setback, Big Lots remains focused on pursuing an alternative going concern transaction either with Nexus or another interested party. The goal is to complete the sale by early January, preserving the company’s operational continuity and business value.
In parallel with these efforts, the Company has also decided to prepare for going out of business (GOB) sales at all remaining Big Lots store locations across the country. These sales are expected to begin in the coming days and will be aimed at protecting the value of the company’s estate. However, Big Lots maintains that these GOB sales will not preclude them from completing an alternative going concern transaction. The Company hopes to find a buyer who will continue operating the business under its current model despite the need to begin these liquidation efforts.
Commitment to Completing a Transaction
Bruce Thorn, Big Lots’ President and CEO, stressed the company’s commitment to completing a going-concern transaction. “We have worked extremely hard and have taken every possible step to finalise a sale that allows us to continue operating as a going concern,” Thorn said. While we remain hopeful that we can finalise an alternative transaction, we have made the difficult decision to begin the GOB process to protect the value of the Big Lots estate.
This dual approach is intended to safeguard the company’s assets and give it flexibility in executing a viable transaction. The company’s leadership is actively engaging with potential buyers and continuing negotiations with Nexus Capital Management to reach a favourable outcome for all stakeholders involved.
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Ongoing Operations and Customer Assurance
Despite the challenging circumstances, Big Lots reassured customers that it will continue operating in-store and online. The company will honour all existing customer orders and provide updates as needed. As part of the GOB process, many locations are expected to hold clearance sales, offering substantial discounts on various products, including furniture, home décor, and pantry essentials.
Big Lots has committed to keeping customers informed about the status of their orders and any impact on delivery timelines as the liquidation process progresses. The company remains dedicated to providing value to its customers and meeting their needs during this uncertain period.
Advisors and Legal Counsel
Big Lots has enlisted several prominent advisors and legal teams to help it navigate the ongoing court-supervised process. Davis Polk & Wardwell LLP serves as the company’s legal counsel, while Guggenheim Securities, LLC is its financial advisor. AlixPartners LLP provides restructuring advice, and A&G Real Estate Partners assists with real estate matters. These advisors are helping the company explore potential strategic transactions and continue restructuring efforts.
Big Lots is also working closely with its claims agent, Kroll Restructuring Administration LLC, which oversees court filings and provides information about filing proof of claims for those with outstanding business with the company. Interested parties can visit Kroll’s website at https://cases.ra.kroll.com/biglots or contact the company’s toll-free number, (844) 217-1398, for further information on the proceedings.
About Big Lots, Inc.
Big Lots is one of the largest closeout retailers in the United States, offering significant savings on a wide array of home products. The company provides extreme value through closeouts, liquidations, overstocks, and private-label products. Focusing on helping customers “Live BIG and Save LOTS,” Big Lots includes everything from furniture and décor to pantry essentials. Through these efforts, Big Lots has delivered more than $176 million in philanthropic support across hunger, housing, healthcare, and education.
For more information or to shop online, visit biglots.com.
Forward-Looking Statements
This press release contains forward-looking statements about Big Lots’ plans, goals, and objectives. Such statements are based on the company’s assumptions and expectations, but results may differ materially. Factors such as economic conditions, the success of negotiations, competitive pressures, and consumer behaviour could impact the company’s ability to execute its plans. Please consult the company’s filings with the SEC for additional risk factors.
