Big Lots received interim Court approval for certain "first day" motions related to the Company's voluntary Chapter 11 proceedings.

Among other relief, the Court granted interim approval for the Company to immediately access a portion of its $707.5 million postpetition financing facilities. This financing, coupled with cash generated from the Company's ongoing operations, is expected to provide sufficient liquidity to support the Company while it continues its operations in the ordinary course of business and works to complete the previously-announced sale transaction with an affiliate of Nexus Capital Management LP ("Nexus").

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 U.S. Bankruptcy Court for the District of Delaware.

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 U.S. Bankruptcy Code. Accordingly, the proposed transaction is subject to higher or otherwise better offers, Court approval, and other conditions. Under the Sale Agreement, if Nexus is deemed the winning bidder, the parties anticipate closing the transaction during the fourth quarter of 2024.

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.