Chapter 11 Updates: Big Lots, LL Flooring Find Buyers

Two retailers in Chapter 11 Bankruptcy proceeding have announced buyers: Big Lots, Inc. (Columbus, Ohio) said it has entered into an agreement that calls for virtually all its assets to be bought by Nexus Capital Management LP, while LL Flooring Holdings Inc. (Richmond, Va.), has signed to sell to F9 Investments.

Big Lots simultaneously announced its entry into Chapter 11 and the procurement of Nexus as a buyer in a news release. As part of the court-supervised sale process, the retailer said is continuing to assess its operational footprint, which will include closing additional store locations. (In August, the company said it was closing about 300 of its 1500 stores.) The company also plans to continue evaluating and optimizing its distribution center model.

“Though the majority of our store locations are profitable, we intend to move forward with a more focused footprint to ensure that we operate efficiently and are best positioned to serve our customers,” said President and CEO Bruce Thorn. “To accomplish this, we intend to use the tools afforded by this process to continue optimizing our store fleet in an orderly manner.”

As for LL Flooring, under the terms of its asset-purchase agreement, F9 Investments will acquire 219 stores, inventory in those stores and in the company’s Sandston, Va., distribution center, LL Flooring’s intellectual property and other company assets. The transaction is expected to be completed by the end of September, subject to approval by the bankruptcy court and other closing conditions.

“We are pleased to have reached this agreement with F9 Investments for a going-concern sale following significant efforts by our team and advisors to preserve the business and maintain ongoing operations,” said Charles Tyson, President and CEO of LL Flooring, in a news release.

While the company had filed materials with the bankruptcy court on Aug. 30 to fully liquidate the business, the company was able to subsequently reach the agreement with F9 Investments that will maintain the business as a going-concern, pending approval by the bankruptcy court. [Editor’s note: an item on the company’s now-defunct plans to liquidate that was posted Sept. 6 has been deleted from VMSD.com.]

LL Flooring also continues to work with Hilco Merchant Resources LLC, to assist the company in store closing sales at 211 of its locations, including the recently initiated 117 store closings and the 94 store closings already in process that had been previously announced on Aug.11.