Big Lots, a Top 50 retailer, stated that it has entered into a selling deal with affiliates of Nexus Capital Management as part of its Chapter 11 bankruptcy proceedings.
Nexus has consented to purchase the company’s assets and continuing commercial operations, as stated in the documents. 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.
In accordance with section 363 of the U.S. Bankruptcy Code, the investment firm will act as the stalking horse bidder in an auction process overseen by the court, as per the conditions of the sale agreement. Therefore, the proposed deal is contingent upon court permission, better or higher offers, and other factors. As per the terms of the agreement, the parties plan to close the deal in the fourth quarter of 2024, assuming Nexus is declared the successful bidder.
The bid period ends at 5 p.m. ET on October 15. An auction will take place on October 18 at 10 a.m. if the debtors receive one or more qualified bids in addition to the stalking horse bid on or before the bid deadline.
In order to “make opportunistic debt and equity investments in a broad range of companies and industries,” Nexus states on its website that it was founded in 2013. It claims that in order to produce alluring long-term returns, it partners with top businesses and management teams across a variety of industries. It stated that it spends between $50 million and $300 million in each transaction, with the option to commit more or less under certain conditions.
It has made investments in home furnishings companies over the years, such as Resident (2020) and Lamps Plus (2022). Other well-known consumer brands are Toms, FTD, and Dollar Shave Club.
