Big Lots, a Top 50 retailer, acknowledged that it will be closing more locations as part of the terms of its sale agreement and Chapter 11 filing in the U.S. Bankruptcy Court for the District of Delaware].
At least 344 stores would be closed initially by the Columbus, Ohio-based discounter, according to a document submitted to the court on September 11.
Big Lots submitted a Chapter 11 protection filing on September 9th, citing estimated assets of $1,000,000,001 to $10 billion against estimated obligations to an estimated 5,001 to 10,000 creditors of $1,000,000,001 to $10 billion.
On the same day, it declared that it would sell the company to affiliates of Nexus Capital Management, contingent upon better and higher bids during a court-supervised auction procedure. Nexus has committed to buy the company’s assets and continue its business activities as the auction’s stalking horse bidder. The purchase price that has been agreed upon is roughly $760 million, which includes the assumption of certain obligations, the debt payback amount, and $2.5 million in cash.
President and CEO Bruce Thorn stated that Big Lots might earn a profit again in 2025, but that it will probably be closing more shops as part of the bankruptcy process in a letter to staff members.
He explained that the company considers a number of variables when deciding which locations to close, such as the store’s proximity to other stores, the quality of the property, prospective volume, rent commitments, and the achievement of specific operational and financial goals.
