Ohio-based discount retailer Big Lots, which has a Galesburg store, says performance has been improving, but it’s still filing a voluntary petition for Chapter 11 bankruptcy.
But, it already has a potential buyer.
The company says in a news release an affiliate of an asset management company called Nexus Capital Management has agreed to buy the company, which could happen as part of a court-supervised auction.
Nexus would become what is called a “stalking horse bidder” under the agreement, and the finalization of the sale would depend on it being the winner.
“We are excited to have the opportunity to partner with Big Lots and help return this iconic brand to its status as America’s leading extreme value retailer,” said Evan Glucoft, Managing Director, Nexus Capital Management, in a news release. “The Big Lots business has incredible potential and we are confident that its greatest days are ahead.”
Company executives blame the COVID-19 pandemic on some of the company’s misfortunes, but Big Lots has tried to, in their words, accelerate efforts to improve sales and boost profitability.
Big Lots says there will likely be the closing of additional locations.
One of the Big Lots stores in Peoria closed this past year. Reports suggest 300 other stores are already in the process of closing, and another 250 may be after that.
It’s not clear if that may include the location on Henderson Street in Galesburg.
“We are proud of the work we do every day across Big Lots to provide our customers with unmistakable value and exceptional savings, as well as building stronger communities through our philanthropic efforts,” said Bruce Thorn, CEO, Big Lots, in a news release. “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.”
