Core Viewpoint - Big Lots has reached a new deal that allows it to save up to half of its stores after filing for bankruptcy, with the transaction involving the transfer of its assets to Gordon Brothers Retail Partners [1][5][9]. Group 1: Bankruptcy and Deal Details - Big Lots filed for Chapter 11 bankruptcy protection in September, listing assets and liabilities between $1 billion and $10 billion [6]. - The company initially agreed to sell "substantially all" of its stores and operations to Nexus Capital Management for approximately $760 million, but this deal fell through due to creditor backlash [4][5][6]. - A judge approved the sale to Gordon Brothers, which includes repaying Big Lots' Chapter 11 loan and up to $17 million in outstanding rent and other fees related to the bankruptcy [8][9]. Group 2: Store Operations and Future Plans - Under the new agreement, Variety Wholesalers plans to acquire between 200 and 400 Big Lots stores and up to two distribution centers, intending to operate them under the Big Lots brand [2][3]. - Big Lots has commenced going out-of-business sales at its remaining stores and indicated that total liquidation would occur if the sale was not approved [7][11]. - The deal is seen as a significant achievement for Big Lots, aiming to preserve jobs and maximize asset value for creditors [10][11].

Core Insights - Big Lots has reached an agreement to sell itself to Gordon Brothers Retail Partners, which will help prevent the closure of hundreds of stores and facilitate the transfer of assets to other retailers [1][2] - Variety Wholesalers will acquire between 200 to 400 Big Lots stores and two distribution centers, continuing to operate under the Big Lots brand [2] - The sale is seen as a crucial opportunity to preserve jobs and maintain the Big Lots brand, according to the company's president and CEO Bruce Thorn [3] Company Situation - Big Lots has faced significant challenges, including declining sales, leading to its bankruptcy declaration after considering bankruptcy earlier in the year [3][4] - The initial sale agreement with Nexus Capital Management fell through, prompting Big Lots to plan for going-out-of-business sales [4] Digital Strategy - In an effort to modernize its offerings, Big Lots launched a new app aimed at enhancing customer engagement and streamlining the shopping experience [5] - The app integrates in-store and online shopping, providing a comprehensive platform for users [5] Industry Context - The retail sector is experiencing challenges in maintaining consumer momentum, particularly in brick-and-mortar locations, as highlighted by a recent report [6] - A significant portion of U.S. consumers are now "Click-and-Mortar" shoppers, seeking a blend of digital convenience and in-store experiences [6] Market Challenges - Big Lots has struggled to adapt to changing consumer preferences and the rise of eCommerce, which has diminished the appeal of its traditional brick-and-mortar model [7][8] - The company's reliance on closeout merchandise has become less attractive in a market that increasingly values convenience and variety [8]

Core Insights - Big Lots has entered into an agreement with Gordon Brothers Retail Partners to sell its stores, distribution centers, and intellectual property to various retailers, including Variety Wholesalers, to preserve its brand and retain some jobs [1] - The company has initiated Chapter 11 bankruptcy proceedings and plans to close approximately 20% of its 1,400 outlets across the United States [2] - Big Lots secured $707.5 million in September to support its operations and facilitate the sale of its business to private equity firm Nexus Capital [2] Company Strategy - The sale agreement aims to preserve jobs, maximize value for the estate, and ensure continuity of the Big Lots brand, according to CEO Bruce Thorn [3] - The retailer employs over 30,000 workers and has faced declining sales in recent quarters, impacting its financial stability [3] Market Context - The acquisition by Variety Wholesalers includes plans to purchase 200 to 400 Big Lots stores and two distribution centers, with the intention of retaining current associates [1]

Company Overview - Big Lots has entered voluntary Chapter 11 bankruptcy proceedings and plans to begin going-out-of-business sales at its remaining 900 stores after a failed acquisition deal with Nexus Capital Management [14][15][22] - The company has already closed about 400 stores this year, indicating significant downsizing [14] Financial Performance - Big Lots reported net sales of $1 billion for the first quarter, down 10% from the previous year, with a net loss of $205 million [17] - For fiscal 2024, revenues were $4.7 billion, a decline of 14% from the previous year, and a net loss of $482 million compared to $211 million in 2023 [17] - The company ended the first quarter with inventory valued at $950 million, a 13% decrease from the previous year [5] Market Conditions - The furniture and home furnishings retail segment has declined by 3.3% to $123 billion, contrasting with a 3.5% increase in the overall core retail market [10] - Big Lots attributed its missed sales goals to a pullback in consumer spending, particularly in high-ticket discretionary items [4] Employee Impact - The announcement of the going-out-of-business sales has left approximately 27,000 employees facing unemployment in the New Year [16] Acquisition Attempts - Nexus Capital Management's initial plan to acquire Big Lots has stalled due to lower-than-expected inventory valuation, making the deal economically unviable [28] - Big Lots is still in discussions with Nexus and another firm about potentially keeping "several hundred" stores open [6]

National retailer Big Lots, which is based in Columbus, Ohio, announced Thursday that it will begin having Going Out of Business sales at all of its remaining stores.The retail chain also announced it does not anticipate completing a previously announced asset purchase agreement with Nexus Capital Management and will continue working toward an alternative sale with either Nexus or another company.Big Lots, Inc. hopes to have the sale completed by early January.With no deal set, the company will begin Going ...

Big Lots said Thursday (Dec. 19) that it is preparing to begin going out of business (GOB) sales at all its remaining stores after determining that it no longer expects to complete its previously announced sale to Nexus Capital Management.The closeout retailer said in a press release that it is still working toward completing an alternative going concern transaction — with Nexus or another party — and believes that the GOB sales will not stop it from doing so.Nexus Capital Management did not immediately rep ...

Big Lots’ Chapter 11 bankruptcy filing and upcoming acquisition by Nexus Capital Management revealed the deep-rooted issues in the company’s business model, particularly its struggle to adapt to the digital age.In a previous interview with PYMNTS, Sudip Mazumder, SVP, retail industry lead, North America at digital consultancy Publicis Sapient, said Big Lots relied on a traditional brick-and-mortar model, focused on closeout merchandise and no longer met the demands of consumers seeking convenience, variety ...

Company Remains Committed to Providing Customers with Unmistakable Value and Extreme Bargains COLUMBUS, Ohio, Nov. 22, 2024 /PRNewswire/ -- Big Lots, Inc. (OTC: BIG) (the "Company") today announced that it has received court approval for the sale of substantially all of the Company's assets and ongoing business operations to an affiliate of Nexus Capital Management LP ("Nexus"). The sale, which is subject to customary closing conditions, is expected to close in early December.Bruce Thorn, Big Lots' Presiden ...

COLUMBUS, Ohio, Nov. 8, 2024 /PRNewswire/ -- Big Lots, Inc. (OTC:BIG) today announced the launch of a new Big Lots app is designed to enhance the shopping experience for its valued customers. The app is available for current and new Big Reward members, bringing a host of new features and benefits for its loyal customers. It is the latest step in delivering on its promise to be the leader in extreme value. The enhanced Big Lots app offers in-store rewards access, a personalized dashboard for tracking earning ...

In collaboration with Stop Soldier Suicide and Children of Fallen Patriots, Big Lots launches donation campaign and offers special in-store discounts to support military familiesCOLUMBUS, Ohio, Nov. 4, 2024 /PRNewswire/ -- Big Lots (OTC: BIG) will honor veterans and active military members throughout November with exclusive discounts, recognition of veteran associates and partnerships with national nonprofits dedicated to supporting military families. In partnership with Stop Soldier Suicide and Children of ...