Big Lots, a discount retailer with locations in western Kentucky and middle Tennessee, announced Monday it filed for Chapter 11 bankruptcy protection.
The plans are to sell assets amid ongoing operations to private equity firm Nexus Capital Management, which will act as a “stalking horse” bidder – the sale is subject to higher or better offers. If Nexus wins, the deal is expected to close in the fourth quarter.
Despite improved performance, Big Lots’ board decided the sale to Nexus was the best move. The company will continue selling goods in stores and online during the court-supervised sale process and plans to close some stores, though specifics were not provided.
Last year, Big Lots operated nearly 1,400 stores in 48 states and has been working to close nearly 400 stores in recent months. Kentucky locations include Hopkinsville, Madisonville, and Murray. Big Lots also operates a location in Clarksville, Tennessee.
