Big Lots Plan to Sell Business to Nexus Capital Falls Apart

(Bloomberg) — Big Lots Inc. does not expect to complete a planned sale of its business to private equity firm Nexus Capital Management LP, putting the discount retailer that employs more than 27,000 people at risk of liquidation.

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The company said it continues to work toward completing an alternative going concern transaction with Nexus or another party, and aims to complete that by early January, it said in a release.

A valuation appraisal of the bankrupt company’s inventory came in lower than expected, which threatened the economics of the sale of the chain to Nexus, Bloomberg reported earlier on Thursday. At the same time, landlords had demanded that Big Lots explain why it hadn’t closed the deal with Nexus, which agreed to buy the company after it filed for Chapter 11 in September.

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