Discount retailer Big Lots Inc. announced Sept. 9 it filed for Chapter 11 bankruptcy and entered into an agreement to sell all its assets and ongoing business operations to Nexus Capital Management LP.
Columbus, Ohio-based Big Lots said its stores and website remain open.
The chain has five stores in Northeast Florida comprising three in Jacksonville and one each in Jacksonville Beach and St. Augustine after closing its store in Orange Park in the South Blanding Village shopping center in August.
“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 CEO Bruce Thorn said in a news release.
Nexus will serve as the “stalking horse bidder,” subject to higher and better offers for the company.
“The Big Lots business has incredible potential and we are confident that its greatest days are ahead,” said Nexus Managing Director Evan Glucoft in the release.
Los Angeles-based Nexus says it was formed in 2013 “to make opportunistic debt and equity investments in a broad range of companies and industries.”
Among the holdings it lists on its website is Acosta Sales and Marketing, the Jacksonville-based firm that went through a prepackaged Chapter 11 bankruptcy reorganization in 2020. Its other businesses include FTD, Lamps Plus, Dollar Shave Club, Toms and others.
Big Lots cited high inflation and interest rates that was “particularly challenging” to its core customers who curbed their discretionary spending on the home and seasonal product categories.
The stores sell furniture, decor, pantry items, kitchenware, pet supplies and more.
The Wall Street Journal reported the company has largely posted consecutive quarterly losses since 2022. It said Big Lots operated more than 1,300 stores in the U.S. as of May, according to a recent SEC filing, down from 1,425 in early 2023.
“Though the majority of our store locations are profitable, we intend to move forward with a more focused footprint to ensure that we operate efficiently and are best positioned to serve our customers,” Thorn said.
“To accomplish this, we intend to use the tools afforded by this process to continue optimizing our store fleet in an orderly manner.”
Big Lots has secured commitments for $707.5 million of financing, including $35 million in new financing from its current lenders.
“We intend to pay our vendors in full for any goods and services provided after the filing,” the company said on its website.
“Coupled with cash generated from ongoing operations, we expect to have ample liquidity for the business to operate during the sale process.”
The sale to Nexus is expected to close in the fourth quarter.
The company has created a website about the bankruptcy at bigstepforbiglots.com.