(Bloomberg) -- Apollo Global Management Inc. was close to buying discount furniture retailer Big Lots Inc. until discussions fell apart, according to people with knowledge of the matter.
The talks collapsed last week due to terms tied to the company's agreement this year to sell and lease back some distribution centers to Oak Street Real Estate Capital, said the people, who asked to not be identified because the discussions were private. The talks with Apollo are unlikely to be revived, this people said.
The leaseback terms would also make it difficult for another private firm to acquire the company, the people said.
Representatives for Big Lots and Apollo declined to comment.
Big Lots, which operates about 1,400 stores in 47 U.S. states, said in June it expected to fetch about $550 million after expenses and taxes from the leaseback deal.
Big Lots rose 0.4% to close at $50.23 in New York, giving the Columbus, Ohio-based company a market value of about $2 billion.
The company, with access to a $700 million credit facility, is well-positioned to navigate upcoming quarters, Chief Executive Officer Bruce Thorn said in June.
New York-based Apollo, one of the world's biggest private equity firms, has invested in retailers including Claire's Stores Inc. and Linens 'n Things Inc., according to data compiled by Bloomberg.
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