The Big Lots locations in Bradford and Olean, N.Y., had so far escaped the company’s previous rounds of closures.
But, officials announced this week their intent to proceed with going-out-of-business (GOB) sales at all remaining locations.
Earlier this year, Big Lots started the Chapter 11 process in the U.S. Bankruptcy Court for the District of Delaware. Plans to close 35 to 40 stores were announced in a July Securities and Exchange Commission filing, followed by an August filing for another 315.
The Ohio-based company planned to close more stores under new leadership, with the closures part of officials’ ongoing assessment of its operational footprint as well as an impending sale agreement with an affiliate of Nexus Capital Management LP.
In their press release this week, Big Lots officials said they do not anticipate completing their previously announced asset purchase agreement with Nexus Capital Management. However, they have not ceased searching for a buyer, stating the company “continues to work toward completing an alternative going concern transaction with Nexus or another party.”
Believing that the (GOB) sales would not preclude such a transaction, the company will commence the sales at all remaining locations “to protect the value of its estate,” while simultaneously searching for another buyer. “The company’s goal would be to complete a sale by early January,” representatives said in a press release.
Bruce Thorn, Big Lots’ president and CEO, said, “We all have worked extremely hard and have taken every step to complete a going concern sale. While we remain hopeful that we can close an alternative going concern transaction, in order to protect the value of the Big Lots estate, we have made the difficult decision to begin the GOB process.”
The company indicated it would continue serving customers in-store and online, and provide updates as available. Big Lots features household items, furniture and other goods.
Court filings and other information related to the proceedings, including how to file a proof of claim, are available at cases.ra.kroll.com/biglots, by calling toll-free at (844) 217-1398, or by sending an email to biglotsinfo@ra.kroll.com.
