The retail chain giant announced that Nexus Capital Management, a private equity firm, will acquire “substantially all” of the company’s stores and business operations. However, Big Lots' physical locations and online stores will remain open to customers throughout the proceedings.

Bruce Thorn, CEO of Big Lots, expressed, “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.”

Nexus Capital becomes the ‘stalking horse bidder’ for Big Lots
Big Lots' financial troubles have been exacerbated by a decline in discretionary spending on home and seasonal products, which form a large part of the company’s revenue. Despite its financial struggles, Big Lots has secured $707.5 million in new financing to support ongoing operations, including paying employees and vendors. Nexus Capital Management has been named the “stalking horse bidder.”

The bankruptcy filing is being attributed to a range of economic pressures, including high inflation and rising interest rates. These factors altered consumer behaviour, with many shoppers adjusting their spending habits. While people continue to seek out value, they aren't necessarily focusing solely on lower-cost options.

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