Discount retailer Big Lots files for bankruptcy

[KARAH RUCKER]

BIG NEWS FROM BIG LOTS TODAY —
THE DISCOUNT RETAILER FILING FOR CHAPTER 11 BANKRUPTCY PROTECTION

IN ITS FILING WITH A DELAWARE BANKRUPTCY COURT — BIG LOTS LISTS ITS ASSETS AND LIABILITIES IN THE RANGE OF 1 BILLION DOLLARS TO 10 BILLION.

AS PART OF THE CHAPTER 11 PROCESS – BIG LOTS STORES AND WEBSITE WILL REMAIN OPEN FOR SHOPPERS.

THE COLUMBUS OHIO-BASED COMPANY SAYS IT HAS SECURED 707 POINT 5 MILLION DOLLARS IN FINANCING TO SUPPORT ITS BUSINESS.

BIG LOTS HAS 14 HUNDRED STORES ACROSS THE U.S. – WITH 30 THOUSAND EMPLOYEES. THE COMPANY SAYS PRIVATE EQUITY FIRM NEXUS CAPITAL IS ACQUIRING “SUBSTANTIALLY ALL” OF ITS STORES AND OPERATIONS.

NEXUS CAPITAL WILL SERVE AS WHAT’S KNOWN AS A “STALKING HORSE BIDDER” IN THE COURT-SUPERVISED AUCTION PROCESS – MEANING –ITS ACQUISITION IS EXPECTED TO CLOSE LATER THIS YEAR – UNLESS A BETTER OFFER COMES ALONG.

BIG LOTS BLAMES ITS CURRENT SITUATION ON FACTORS LIKE HIGH INFLATION AND INTEREST RATES AND CHANGES IN CUSTOMER SPENDING HABITS.

BIG LOTS IS ALREADY IN THE PROCESS OF SHUTTERING AROUND 300 STORES AND SAYS ADDITIONAL CLOSURES ARE PLANNED AS THE COMPANY CONTINUES TO EVALUATE ITS OPERATIONS.

FIND MORE OF OUR BUSINESS COVERAGE AT OUR WEBSITE SAN DOT COM AND ON THE STRAIGHT ARROW NEWS APP.