Los Angeles — As part of its Chapter 11 bankruptcy proceedings, Top 50 retailer Big Lots announced that it has entered into a sale agreement with affiliates of Nexus Capital Management.
As outlined in the documents, Nexus has agreed to acquire the company’s assets and ongoing business operations. The agreed-to purchase price is approximately $760 million, consisting of $2.5 million in cash plus the debt payoff amount and the assumption of certain liabilities.
Under the terms of the sale agreement, the investment firm will serve as the stalking horse bidder in a court-supervised auction process pursuant to section 363 of the U.S. Bankruptcy Code. Accordingly, the proposed transaction is subject to higher or otherwise better offers, court approval and other conditions. Under the agreement, if Nexus is deemed the winning bidder, the parties anticipate closing the transaction during the fourth quarter of 2024.
The bid deadline is Oct. 15 at 5 p.m. ET. If the debtors receive one or more qualified bids in addition to the stalking horse bid on or before the bid deadline, an auction will be conducted on Oct. 18 at 10 a.m.
On its website, Nexus notes that it was formed in 2013 to “make opportunistic debt and equity investments in a broad range of companies and industries.” It says it invests in a range of industries and seeks to partner with leading companies and management teams in pursuit of generating attractive long-term returns. It said it invests $50 million to $300 million per transaction, with the ability to make larger or smaller commitments in selected circumstances.
Home furnishings companies it has invested in over the years include Lamps Plus (2022) and Resident (2020). Other notable consumer brands include Dollar Shave Club, FTD and Toms.