#United States #Big Lots #Nexus Capital #Columbus #Going Concern

Big Lots Provides Important Update on Legal and Business Proceedings

Big Lots, Inc. has recently shared a significant update regarding its ongoing court-supervised processes. The company has indicated that it no longer expects to finalize its previously announced asset purchase agreement with Nexus Capital Management. Instead, it is focusing on securing an alternative transaction that revolves around maintaining business operations, referred to as a "going concern" transaction. This shift is aimed at preserving the value of the company's estate as it navigates through these challenging times.

Context of the Announcement

This announcement comes during a pivotal moment for Big Lots, which has been implementing several strategic initiatives to stabilize its operations. The company's leadership remains optimistic about finding a viable alternative that could be completed by early January. The CEO, Bruce Thorn, emphasized the collective effort put forth by the Big Lots team in pursuit of this outcome, stating that they are on a passionate mission to complete a transaction that would enable the company to continue serving its customers and fulfill its operational commitments.

Going Out of Business Sales

While exploring these alternative options, the company is preparing to initiate going out of business (GOB) sales at all remaining store locations. This decision has been described as a difficult one. Thorn noted, "To protect the value of the Big Lots estate, we have made the difficult decision to begin the GOB process while still working towards an alternative transaction." This dual approach is intended to balance the urgency of liquidating inventory with pursuing a strategy that enables the company to continue operations in some capacity.

Customer Engagement and Future Steps

Despite these transitions, Big Lots continues to service its customers in-store and online. The company has also promised to provide timely updates regarding its situation as new developments arise. These updates include essential information for stakeholders interested in the proceedings, which can be found on a dedicated website operated by Kroll Restructuring Administration LLC. It’s important for customers and affiliates to stay informed about where they can file claims or seek assistance during this period.

The company has enlisted various advisors to assist in this process, including legal counsel, financial advisors, and real estate specialists, to navigate these complex transactions effectively. This indicates a commitment to ensuring that all actions taken are strategic and well-planned.

About Big Lots, Inc.

Big Lots operates as one of the prominent closeout retailers in the United States, distinguished by its focus on delivering value across various home essentials, including furniture, décor, and pantry items. With a mission encouraging customers to "Live BIG and Save LOTS," the company has employed sourcing strategies aimed at maximizing bargains through various means like closeouts and private labels. Additionally, Big Lots has contributed significantly to charitable endeavors, accounting for over $176 million in support across sectors such as hunger and education, further demonstrating its commitment to the community at large.

While Big Lots navigates this challenging chapter, its focus remains on protecting the interests of its customers, employees, and stakeholders alike, striving to ensure that its legacy as a value-driven retailer continues well into the future. Customers are encouraged to shop online and check store availability as the company transitions through this difficult period.