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Big Lots, Inc. (NYSE:BIG), a well-known name in extreme value retailing, has announced a significant strategic shift aimed at revitalizing its operations and financial health. The company has entered into a Sale Agreement with an affiliate of Nexus Capital Management LP ("Nexus"), which will see Nexus acquiring substantially all of Big Lots' assets and ongoing business operations. To facilitate this transition, Big Lots, along with its subsidiaries, has filed for voluntary Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware.
Despite these developments, Big Lots remains committed to serving its customers throughout the process. Consumers can continue shopping at their nearest store or online at biglots.com. Bruce Thorn, President and CEO of Big Lots, emphasized the company’s dedication to delivering exceptional value and savings. He stated, "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. 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."
Thorn also highlighted the company's unwavering commitment to its core mission of helping customers "Live BIG and Save LOTS," expressing gratitude for the loyalty of Big Lots' customers, the dedication of its associates, and the support of its vendors. The company is determined to maintain an outstanding shopping experience and offer exceptional bargains during this transitional period.
Evan Glucoft, Managing Director of Nexus, expressed optimism about the future of Big Lots, stating, "We are excited to have the opportunity to partner with Big Lots and help return this iconic brand to its status as America's leading extreme value retailer. The Big Lots business has incredible potential and we are confident that its greatest days are ahead."
The decision to enter Chapter 11 follows a comprehensive review by Big Lots’ Board of Directors, driven by challenges such as high inflation and interest rates, which have adversely affected discretionary spending on home and seasonal products. Although Big Lots' underlying performance has shown signs of improvement, these economic factors have strained the company's operations.
As part of the restructuring, Big Lots will evaluate and potentially close additional store locations and optimize its distribution centers to streamline operations. Thorn noted, "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."
