With Nexus deal in doubt, Big Lots prepares going out of business sales
The retailer will continue to work toward completing an alternative going concern transaction with Nexus or another party.
COLUMBUS, Ohio — Retailer Big Lots announced on Dec. 19 that it does not anticipate completing its previously announced asset purchase agreement with Nexus Capital Management.
However, it continues to work toward completing an alternative going-concern transaction with Nexus or another party. The Columbus, Ohio-based discounter’s goal would be to complete a sale by early January.
In parallel with these efforts, Big Lots is preparing to commence going-out-of-business sales at all remaining Big Lots store locations in the coming days to protect the value of its estate. The company believes that the going-out-of-business sales will not preclude it from effectuating a going-concern transaction.
“We all have worked extremely hard and have taken every step to complete a going-concern sale,” said Bruce Thorn, president and CEO in a statement. “While we remain hopeful that we can close an alternative going-concern transaction, in order to protect the value of the Big Lots estate, we have made the difficult decision to begin the GOB process.”
The company continues to serve customers in-store and online, and it will provide updates as they are available.
On Sept. 9, Big Lots filed for Chapter 11 protection, citing estimated assets of $1,000,000,001 to $10 billion against estimated liabilities of $1,000,000,001 to $10 billion to an estimated 5,001 to 10,000 creditors.
That same day, it announced a sales agreement with affiliates of Nexus, subject to higher and better bids, as part of a court-supervised auction process. Nexus, designated as the stalking horse bidder for the auction, agreed to acquire the company’s assets and ongoing business operations. The agreed-to purchase price consisted of $2.5 million in cash plus the debt payoff amount and the assumption of certain liabilities.
See also:
What's Your Reaction?
