Secures Interim Approval to Access
Debtor-in-Possession Financing
Reiterates Commitment to Continue Providing
Customers with Unmistakable Value and Extreme Bargains
COLUMBUS, Ohio, Sept. 11,
2024 /PRNewswire/ -- Big Lots, Inc. (NYSE: BIG) (the
"Company") today announced that it 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.
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
U.S. or Canada), or by sending an
email to biglotsinfo@ra.kroll.com.
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 $176 million of
philanthropic support to critical needs in hunger, housing,
healthcare, and education. For more information, to shop online, or
to find a store near you, please visit biglots.com.
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.
