American off-price retailer Big Lots has received court approval to sell its assets and ongoing business operations to an affiliate of Nexus Capital Management.
The transaction will finalise in early December 2024.
Nexus managing director Evan Glucoft said: “Nexus's acquisition of Big Lots is a testament to our confidence in the company's core proposition and growth prospects.
“We strongly believe that Big Lots is on the brink of capitalising on its potential, and we look forward to working with the talented Big Lots team to accelerate its mission and realise the opportunities ahead.”
In September 2024, Big Lots signed an agreement with a Nexus Capital affiliate for the sale.
The company and its subsidiaries filed for a voluntary Chapter 11 proceedings in the US Bankruptcy Court for the District of Delaware to facilitate the sale.
The same month, Big Lots secured interim court approval for key motions as part of the Chapter 11 proceedings.
This approval granted Big Lots access to part of its $707.5m post-petition financing facilities.
Big Lots president and CEO Bruce Thorn said: “Today's approval paves the way for a new phase for Big Lots, during which we intend to reclaim our position as the undisputed leader in extreme value. Partnering with Nexus, which believes in our business and long-term potential, will ensure that Big Lots is best positioned to emerge as a stronger company for 2025 and beyond.
“As we work to close the transaction, we remain focused on serving our customers and want to thank our associates for their continued hard work and dedication to providing them with the best service possible.”
The DIP Financing Facility, along with cash from ongoing operations, is anticipated to provide liquidity for the company until the sale is completed.
Davis Polk & Wardwell is acting as legal counsel, Guggenheim Securities as financial advisor, AlixPartners as restructuring advisor and A&G Real Estate Partners as real estate advisor for Big Lots.
Kirkland & Ellis serves as legal counsel to Nexus.
Big Lots currently has 1,118 locations across the US in states including Alabama, Nebraska, Virginia and Washington.
