04:42 AM EDT, 09/09/2024 (MT Newswires) -- Big Lots ( BIG ) said Monday it has filed for Chapter 11 bankruptcy proceedings with the US Bankruptcy Court for the District of Delaware, and agreed to sell substantially all of its assets and ongoing business operations to Nexus Capital Management.

Under the terms of the agreement, Nexus will serve as the "stalking horse bidder" in an auction process and the anticipated Q4 closing of the deal is subject to consideration of better offers and court approval, the company said.

The discount retailer said its stores and website will continue to operate during the process.

The sale and bankruptcy filing followed a review by the company's board of directors.

Big Lots ( BIG ) also said it has secured $707.5 million in financing, including $35 million in new financing from current lenders.

Meanwhile, the company also said it has been notified by the New York Stock Exchange that it is out of compliance with the rules requiring its share price not to go below $1 for 30 consecutive days.

Shares of the company fell almost 40% in after-market hours.

Price: 0.2989, Change: -0.20, Percent Change: -39.83