Big Lots files for bankruptcy, will close some stores amid sale to investment firm
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About three months after Big Lots noted «substantial doubt about the Company's ability to continue» in a U.S. Securities & Exchange Commission (SEC) filing, the company said on Monday it has secured $707.5 million to support its operations and sell its business to private equity firm Nexus Capital.
This comes as the company has initiated bankruptcy proceedings under Chapter 11. Big Lots listed its assets and liabilities in the range of $1 billion to $10 billion, according to a filing with bankruptcy court in Delaware, which showed creditors in the range of 5,001-10,000.
Big Lots cited troubles that began during the COVID-19 pandemic, and «macroeconomic factors such as high inflation and interest rates that are beyond its control.»
As a result, Big Lots says consumers are spending less on home and seasonal products, which is a «significant portion of the Company's revenue.»
BIG LOTS WEIGHING POSSIBILITY OF BANKRUPTCY FILING AS SALES DWINDLE
A close up look of a Big Lots store in Los Angeles, California, US, on Saturday, Sept. 7, 2024. (Eric Thayer/Bloomberg via Getty Images / Getty Images)
«We are proud of the work we do every day across Big Lots to provide our customers with unmistakable value and exceptional savings, as well as building stronger communities through our philanthropic efforts,» Big Lots President and CEO Bruce Thorn said in a press release.
«The actions we are taking today will enable us to move forward with new owners who believe in our business and provide financial stability, while we optimize our operational footprint, accelerate improvement in our performance, and deliver on our promise to be the leader in extreme value.»
BIG LOTS CLOSING DOZENS OF
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