Big Lots Inc. (BIG) said early Monday it has agreed to be acquired by Nexus Capital Management LP. and has entered voluntary Chapter 11 bankruptcy proceedings to facilitate the deal. "Operating under new ownership who believes in our business and provides increased financial stability will improve our long-term profitability," the discount retailer said in a statement. The news comes just days after Big Lots said it was delaying quarterly earnings by six days to Sep. 12. Big Lots had raised concerns in June about its ability to stay afloat, as losses were piling up and its lower-income shoppers were struggling under a two-year inflation spike. In a regulatory filing, the company said that its shakier cash and credit situation "raises substantial doubt about the company's ability to continue as a going concern." And it said the likely inability to comply with the terms of a 2022 credit agreement "would result in an event of default which could result in an acceleration of our obligations." The stock was halted premarket for the news after closing Friday at 50 cents, down 93.6% in the year to date.

-Ciara Linnane

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September 09, 2024 06:32 ET (10:32 GMT)

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