(Reuters) - U.S. discount home goods retailer Big Lots (NYSE:BIG) said on Monday it has secured $707.5 million to support its operations and sell its business to private equity firm Nexus Capital, as it has initiated bankruptcy proceedings under Chapter 11.
Big Lots listed its assets and liabilities in the range of $1 billion to $10 billion, according to a filing with bankruptcy court in Delaware, which showed creditors in the range of 5,001-10,000.
Nexus will serve as a "stalking horse bidder" in a court-supervised auction process, Big Lots said, adding that the deal will close in the fourth quarter of 2024 if Nexus is deemed the winning bidder.
A stalking horse bid is used as a starting or minimally accepted offer that other interested bidders must surpass if they want to buy the asset or the company.
Big Lots said its second quarter results are in line with the guidance. The company will release its full second-quarter results on Sept. 12, after previously postponing from Sept. 6.
Big Lots, a retailer operating around 1,400 stores across the U.S. and employing more than 30,000 workers, has been grappling with declining sales over the past few quarters, putting pressure on its balance sheet.