Big Lots, the discount chain that filed for bankruptcy protection in September, has reached an agreement to keep hundreds of stores and distribution centers open.
Big Lots announced Friday that it will be sold to Gordon Brothers Retail Partners, which specializes in distressed companies. Gordon Brothers will then transfer Big Lots stores, distribution centers and other assets to other retailers.
Variety Wholesalers, which owns more than 400 discount stores in the Southeast and Mid-Atlantic regions, plans to acquire 200 to 400 Big Lots stores and operate them under the Big Lots brand. The variety wholesaler will also acquire up to two distribution centers.
“This sale agreement and transfer will preserve jobs, maximize real estate value, and ensure the continuity of the Big Lots brand,” Bruce Thorne, president and CEO of Big Lots, said in a statement. “This is our strongest opportunity to secure this.” “We are grateful to our employees across the country for their grit and resilience throughout this process.”
Big Lots, based in Columbus, Ohio, sells furniture, home decor and other items. When the company filed for bankruptcy in September, it said inflation and high interest rates were holding back consumers from buying household and seasonal items. These two categories are what the chain relies on for a significant portion of its revenue.
At the time, Big Lots was planning to sell its assets and continued operations to private equity firm Nexus Capital Management.
However, on December 20, Big Lots announced that the deal with Nexus did not materialize. We then partnered with Gordon Brothers to hold a going-out-of-business sale at 869 locations across the United States.
