Big Lots has received court approval to sell its assets and ongoing business operations to an affiliate of Nexus Capital Management, which will help the company emerge from Chapter 11.

The discount retailer filed for Chapter 11 bankruptcy in Delaware in September after it suffered from weakened discretionary spending amid macroeconomic challenges. 

The company entered into a sales agreement with Nexus, which serves as the ‘stalking horse bidder’, and planned to shutter several stores during the process.

Bruce Thorn, Big Lots’ president and CEO, said the approval paves the way for a new phase for the company.

“Partnering with Nexus, which believes in our business and long-term potential, will ensure that Big Lots is best positioned to emerge as a stronger company for 2025 and beyond,” Thorn added.

The sale, subject to customary closing conditions, is expected to close early next month. Financial details of the deal were not disclosed.