Big Lots plans to sell business to Nexus Capital Falls Apart

On December 20, 2024By Littum

(Bloomberg) — Big Lots Inc . does not expect to complete a planned sale of its business to private equity firm Nexus Capital Management LP, putting the discount retailer, which employs more than 27,000 people, at risk of liquidation.

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The company said it continues to work toward completing an alternative going concern transaction with Nexus or another party, and aims to close it in early January, it said in a statement.

A valuation of the bankrupt company’s inventory came in lower than expected, threatening the financials of the chain’s sale to Nexus, Bloomberg reported earlier Thursday. At the same time, landlords had demanded that Big Lots explain why it had not closed the deal with Nexus, which agreed to buy the company after it filed for Chapter 11 in September.