The retailer blamed several economic factors for the move, including high inflation and interest rates, that caused its core customers to cut discretionary spending “on the home and seasonal product categories that represent a significant portion” of its revenue.
As part of the filing, private equity firm Nexus Capital Management will take over nearly all Big Lots’ stores and business operations.
Nexus Capital will serve as a “stalking horse” bidder in a court-supervised auction, with the proposed sale subject to higher offers or other bids that could be considered better, the Associated Press reported. If Nexus winds up as the winning bidder, the deal is anticipated to close in the fourth quarter.
The 57-year-old company has secured more than $700 million in fresh financing to keep operating and to pay employees and vendors.
