Discount retailer Big Lots has filed for bankruptcy, just weeks after announcing a series of store closures.
Private equity firm Nexus Capital Management will acquire “substantially all” of Big Lots stores and business operations, CNN reported. Stores and websites will remain open during the transition.
“The actions we are taking today will enable us to move forward with new owners who believe in our business and provide financial stability, while we optimize our operational footprint, accelerate improvement in our performance, and deliver on our promise to be the leader in extreme value,” Bruce Thorn, President and Chief Executive Officer, said in a press release.
The company announced in August it was shutting down 300 of its 1,400 stores, including Alabama stores in Bessemer, Huntsville, Prattville, Sylacauga and Troy. No additional closures were announced Monday but, in its press release, the chain said it may need “to close certain locations to ensure that our business operates efficiently and we can continue serving our customers.”
As part of its restructuring, Big Lots has secured $707.5 million in fresh financing to keep operating and expects to pay all employees and vendors, CNN reported. Nexus’ acquisition is expected to close late this year.
