BIG LOTS RECEIVES COURT APPROVAL OF "FIRST DAY" MOTIONS TO SUPPORT BUSINESS OPERATIONS
Big Lots (NYSE: BIG) has received interim Court approval for 'first day' motions related to its voluntary Chapter 11 proceedings. The Court granted interim approval for the company to access a portion of its $707.5 million postpetition financing facilities. This financing, along with cash from ongoing operations, is expected to provide sufficient liquidity to support the company during its restructuring.
The interim relief allows Big Lots to continue paying employee wages and benefits, and make payments to critical vendors. The company has entered into a sale agreement with Nexus Capital Management LP, which will serve as the 'stalking horse bidder' in a court-supervised auction process. The proposed transaction is subject to higher offers and Court approval, with an anticipated closing during the fourth quarter of 2024.
Big Lots (NYSE: BIG) ha ricevuto l'approvazione provvisoria del Tribunale per le 'richieste del primo giorno' relative alla sua procedura volontaria di Chapter 11. Il Tribunale ha concesso l'approvazione provvisoria per permettere all'azienda di accedere a una parte delle $707,5 milioni di facilitazioni di finanziamento post-petizione. Questo finanziamento, insieme al denaro proveniente dalle operazioni in corso, dovrebbe fornire liquidità sufficiente per sostenere l'azienda durante la sua ristrutturazione.
Il sollievo provvisorio consente a Big Lots di continuare a pagare stipendi e benefici ai dipendenti e di effettuare pagamenti ai fornitori critici. L'azienda ha stipulato un accordo di vendita con Nexus Capital Management LP, che agirà come 'offerente di stalking horse' in un'asta supervisionata dal Tribunale. La transazione proposta è soggetta a offerte superiori e all'approvazione del Tribunale, con una chiusura prevista nel quarto trimestre del 2024.
Big Lots (NYSE: BIG) ha recibido la aprobación provisional del Tribunal para las 'solicitudes del primer día' relacionadas con su proceso voluntario de Capítulo 11. El Tribunal otorgó la aprobación provisional a la compañía para acceder a una parte de sus $707.5 millones en facilidades de financiamiento post-petición. Este financiamiento, junto con el efectivo de las operaciones en curso, se espera que proporcione la liquidez suficiente para apoyar a la empresa durante su reestructuración.
El alivio provisional permite que Big Lots continúe pagando salarios y beneficios a los empleados y realice pagos a proveedores críticos. La empresa ha formalizado un acuerdo de venta con Nexus Capital Management LP, que actuará como 'postor de stalking horse' en un proceso de subasta supervisado por el tribunal. La transacción propuesta está sujeta a ofertas superiores y a la aprobación del Tribunal, con un cierre anticipado durante el cuarto trimestre de 2024.
빅 롯츠 (NYSE: BIG)는 자발적인 챕터 11 절차와 관련된 '첫날' 동의안에 대한 법원의 임시 승인서를 받았습니다. 법원은 기업이 $707.5 백만의 사후 자금 조달 시설의 일부에 접근할 수 있도록 임시 승인을 허가했습니다. 이 자금 조달은 진행 중인 운영에서 나오는 현금과 함께 회사가 구조조정 기간 동안 필요한 유동성을 지원할 것으로 예상됩니다.
임시 구제措置는 빅 롯츠가 직원 급여와 복리후생을 계속 지급하고 주요 공급업체에게 지불할 수 있도록 합니다. 이 회사는 법원이 감독하는 경매 과정에서 '스톨킹 호스 입찰자'로 활동할 Nexus Capital Management LP와 판매 계약을 체결했습니다. 제안된 거래는 더 높은 제안 및 법원 승인을 조건으로 하며, 2024년 4분기에 마감될 것으로 예상됩니다.
Big Lots (NYSE: BIG) a reçu l'approbation provisoire du Tribunal pour les 'demandes du premier jour' liées à sa procédure volontaire de chapitre 11. Le Tribunal a accordé une approbation provisoire à l'entreprise pour accéder à une partie de ses 707,5 millions de dollars en facilités de financement post-pétition. Ce financement, associé aux liquidités en provenance des opérations en cours, devrait fournir une liquidité suffisante pour soutenir l'entreprise pendant sa restructuration.
Le soulagement temporaire permet à Big Lots de continuer à verser des salaires et des avantages aux employés et de réaliser des paiements aux fournisseurs critiques. L'entreprise a signé un accord de vente avec Nexus Capital Management LP, qui agira en tant que 'soumissionnaire de stalking horse' dans un processus d'enchères supervisé par le tribunal. La transaction proposée est soumise à des offres supérieures et à l'approbation du Tribunal, avec une clôture prévue durant le quatrième trimestre de 2024.
Big Lots (NYSE: BIG) hat eine vorläufige Genehmigung des Gerichts für 'Erstanträge' im Zusammenhang mit seinen freiwilligen Chapter 11-Verfahren erhalten. Das Gericht gewährte die vorläufige Genehmigung, damit das Unternehmen auf einen Teil seiner $707,5 Millionen Postpetition-Finanzierungsinstrumente zugreifen kann. Diese Finanzierung sowie Bargeld aus laufenden Betrieb werden voraussichtlich ausreichende Liquidität bieten, um das Unternehmen während der Restrukturierung zu unterstützen.
Die vorläufige Erleichterung ermöglicht es Big Lots, Gehälter und Leistungen für Mitarbeiter weiter zu zahlen und an kritische Lieferanten zu zahlen. Das Unternehmen hat einen Verkaufsvertrag mit Nexus Capital Management LP abgeschlossen, der als 'Stalking Horse Bieter' in einem gerichtlichen Auktionsprozess fungiert. Die vorgeschlagene Transaktion unterliegt höheren Angeboten und der Zustimmung des Gerichts, mit einem erwarteten Abschluss im vierten Quartal 2024.
- Secured interim approval to access a portion of $707.5 million postpetition financing
- Allowed to continue paying employee wages and benefits
- Entered into a sale agreement with Nexus Capital Management LP
- Expects to pay vendors in full under normal terms for goods and services provided after filing
- Filed for Chapter 11 bankruptcy protection
- Business operations and assets subject to court-supervised auction process
- Sale agreement with Nexus Capital Management LP subject to higher offers and court approval
Insights
Big Lots' Chapter 11 filing and subsequent court approvals mark a critical juncture for the company. The interim approval to access
The proposed sale to Nexus Capital Management as a "stalking horse bidder" indicates a potential shift in ownership and strategy. While this could lead to a turnaround, it also suggests that current shareholders may face substantial losses. The Q4 2024 timeline for the potential transaction closure adds uncertainty to the company's short-term future.
Investors should closely monitor the upcoming October 9 hearing and any competing bids that may emerge during the court-supervised auction process, as these will be pivotal in determining Big Lots' fate.
Big Lots' restructuring reflects broader challenges in the discount retail sector. The company's focus on being the "leader in extreme value" highlights the intensifying competition in this space, particularly from dollar stores and online retailers.
The commitment to continue operations during restructuring is important for maintaining customer loyalty and vendor relationships. However, the long-term viability of Big Lots' business model remains in question. The potential acquisition by Nexus could bring fresh capital and strategies, but it will need to address fundamental issues in Big Lots' value proposition and operational efficiency.
This situation underscores the importance of adaptability in retail. Competitors and investors should watch closely for insights into evolving consumer preferences and the sustainability of large-format discount stores in the current retail landscape.
The court's approval of "first day" motions is a standard but important step in Chapter 11 proceedings. It allows Big Lots to maintain normal business operations, which is vital for preserving the company's value during restructuring. The interim approval to access DIP financing provides essential liquidity, but also adds a new layer of secured debt.
The "stalking horse" bid from Nexus sets a baseline for the auction process. This structure aims to maximize value for creditors, but it also means the final outcome could differ significantly from the current agreement. The October 9 hearing will be critical, potentially revealing more about creditor support and any competing interests.
Stakeholders should be aware that Chapter 11 proceedings often result in significant changes to capital structure and ownership, with unsecured creditors and equity holders typically facing the greatest risk of losses.
Secures Interim Approval to Access Debtor-in-Possession Financing
Reiterates Commitment to Continue Providing Customers with Unmistakable Value and Extreme Bargains
Among other relief, the Court granted interim approval for the Company to immediately access a portion of its
Additionally, the interim relief granted by the Court will enable the Company to continue paying employee wages and benefits, and making payments to certain critical vendors, in the ordinary course of business. The Company expects to pay vendors in full under normal terms for any goods delivered and services provided after the filing.
A "second day" hearing for the Court to consider the Company's requested relief on a final basis is currently scheduled to occur on October 9, 2024 at 1:00pm ET.
Bruce Thorn, President and Chief Executive Officer, said, "We are focused on delivering on our promise to be the leader in extreme value by helping customers 'Live BIG and Save LOTS'. With the Court relief we have received today and the support of our lenders, we look forward to moving through this process and emerging as a stronger, more-efficient company, well-positioned to serve our customers. We thank our associates, customers, vendors, and all of our stakeholders for their continued support as we work to achieve Big Lots' full potential."
Big Lots' Restructuring and Sale Process
As announced on September 9, 2024, Big Lots entered into a sale agreement with Nexus, which agreed to acquire substantially all of the Company's assets and ongoing business operations. To facilitate the transaction, the Company, together with each of its subsidiaries, initiated voluntary Chapter 11 proceedings in the
Under the terms of the sale agreement, Nexus will serve as the "stalking horse bidder" in a court-supervised auction process pursuant to section 363 of the
Additional Information About the Restructuring and Sale Process
Additional information regarding the Company's restructuring and sale process is available at a dedicated website, bigstepforbiglots.com. Court filings and other information related to the proceedings, including how to file a proof of claim, are available on a separate website administrated by the Company's claims agent, Kroll Restructuring Administration LLC, at https://cases.ra.kroll.com/biglots, by calling toll-free at (844) 217-1398 (or +1 (646) 809-2073 for calls originating outside of the
Advisors
Davis Polk & Wardwell LLP is serving as legal counsel, Guggenheim Securities, LLC is serving as financial advisor, AlixPartners LLP is serving as restructuring advisor, and A&G Real Estate Partners is serving as real estate advisor to the Company. Kirkland & Ellis is serving as legal counsel to Nexus.
About Big Lots, Inc.
Big Lots is one of the nation's largest closeout retailers focused on extreme value. The Company is dedicated to being the big difference for a better life by delivering bargains to brag about on everything for the home, including furniture, décor, pantry and more. It fulfills its mission to help customers "Live BIG and Save LOTS" with sourcing strategies to grow extreme bargains through closeouts, liquidations, overstocks, private labels, and value-engineered products. The Big Lots Foundation, together with the Company's customers, associates, and vendors, has delivered more than
Cautionary Statement Concerning Forward-Looking Statements
Certain statements in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and such statements are intended to qualify for the protection of the safe harbor provided by the Act. The words "anticipate, "estimate," "continue," "could," "approximate," "expect," "objective," "goal," "project," "intend," "plan," "believe," "will," "should," "may," "target," "forecast," "guidance," "outlook" and similar expressions generally identify forward-looking statements. Similarly, descriptions of our objectives, strategies, plans, goals or targets are also forward-looking statements. Forward-looking statements relate to the expectations of management as to future occurrences and trends, including statements expressing optimism or pessimism about future operating results or events and projected sales, earnings, capital expenditures and business strategy. Forward-looking statements are based upon a number of assumptions concerning future conditions that may ultimately prove to be inaccurate. Forward-looking statements are and will be based upon management's then-current views and assumptions regarding future events and operating performance and are applicable only as of the dates of such statements. Although we believe the expectations expressed in forward-looking statements are based on reasonable assumptions within the bounds of our knowledge, forward-looking statements, by their nature, involve risks, uncertainties and other factors, any one or a combination of which could materially affect business, financial condition, results of operations or liquidity.
Forward-looking statements that we make herein and in other reports and releases are not guarantees of future performance and actual results may differ materially from those discussed in such forward-looking statements as a result of various factors, including, but not limited to, the current economic and credit conditions, inflation, the cost of goods, our inability to successfully execute strategic initiatives, competitive pressures, economic pressures on our customers and us, the availability of brand name closeout merchandise, trade restrictions, freight costs, the risks discussed in the Risk Factors section of our most recent Annual Report on Form 10-K, and other factors discussed from time to time in other filings with the SEC, including Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. This release should be read in conjunction with such filings, and you should consider all of these risks, uncertainties and other factors carefully in evaluating forward-looking statements.
You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our public announcements and SEC filings.
Media Contact:
Aaron Palash / Richard M. Goldman
Joele Frank, Wilkinson Brimmer Katcher
BigLotsMedia@joelefrank.com
212-355-4449
Investor Contact:
Alvin Concepcion
Investor_Relations@biglots.com
614-278-2705
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SOURCE Big Lots, Inc.
FAQ
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