(Bloomberg) — Bankrupt retailer Big Lots Inc. not anticipates it could actually full its asset sale to non-public fairness agency Nexus Capital Management LP and can start the sale of its shops in coming days to guard the worth of its actual property.
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The low cost chain that employs greater than 27,000 folks mentioned in a press release Thursday it continues to search for one other technique to keep in enterprise via a transaction it will look to finish by the top of January if a deal might be struck.
“We all have labored extraordinarily laborious and have taken each step to finish a going concern sale,” Bruce Thorn, Big Lots’ president and chief govt officer mentioned. “While we stay hopeful that we are able to shut an alternate going concern transaction, with the intention to defend the worth of the Big Lots property, we’ve got made the troublesome resolution to start the GOB course of.”
The announcement comes as a valuation appraisal of the corporate’s stock was decrease than anticipated, making the economics of the sale to Nexus not viable, in line with folks with data of the matter who requested to not be recognized discussing a personal matter. At the identical time, landlords had pressured the corporate in courtroom to clarify why it hadn’t closed the take care of Nexus, which agreed to purchase the corporate after it filed for Chapter 11 in September.
An official committee of unsecured collectors on Monday had requested in courtroom that the corporate both pay tens of tens of millions of {dollars} in again lease, or be liquidated by a court-approved trustee.
Shuttering Stores
Big Lots will start going-out-of-business gross sales at about 870 shops, firm legal professional Brian M. Resnick mentioned throughout a listening to Thursday in entrance of US Bankruptcy Judge J. Kate Stickles.
The firm continues to be speaking to Nexus and one other agency about saving “a number of hundred” shops as a substitute of your complete group Nexus had initially agreed to take over, Resnick mentioned. That long-shot effort must come collectively “in a few weeks,” Resnick added.
There could be very little time to get a brand new deal, in line with Stickles. “This is what I’d characterize as a melting ice dice,” she mentioned.
A consultant for Guggenheim Partners, which is advising the corporate, declined to remark. Representatives from Big Lots, Nexus, in addition to Kirkland & Ellis, which is advising Nexus, and the corporate’s authorized counsel Davis Polk & Wardwell, didn’t return messages searching for remark.
