Even though Big Lots was dissolved amid Chapter 11 bankruptcy, the company announced late Friday that it had agreed to a sale with Gordon Brothers Retail Partners LLC. The sale, if approved by a judge, would keep hundreds of stores open.
The company was in the process of starting a “going out of business” sale at all its locations after negotiations to sell the company to Nexus Capital Management broke down.
Big Lots has already closed hundreds of stores this year. The company still has more than 900 locations. Closing times for other stores have not yet been determined.
Related article | Big Lots files for bankruptcy, says more stores may close
As part of the new agreement, Gordon Brothers Retail Partners will transfer Big Lots’ assets, including stores, distribution centers and intellectual property, to other retailers and companies, Big Lots said. Variety Wholesalers, which also operates retailer Lowe’s, intends to acquire between 200 and 400 Big Lots stores. Variety Wholesalers also plans to operate stores under the Big Lots brand in the future.
Variety Wholesalers will also continue to open two Big Lots distribution centers under the agreement.
“The strategic sale to Gordon Brothers and the transfer to Variety Wholesalers is a positive and important accomplishment for Big Lots and reflects the tireless and collective efforts of our team.” said Bruce Thorne, president of Lotz. “This sale agreement and transfer provides the strongest opportunity to preserve jobs, maximize the value of the property and ensure the continuity of the Big Lots brand. We thank our employees across the country for their grit and resilience.”
A federal bankruptcy court must approve the store transfer.
Related article |Costco membership increases due to sharp increase in profits despite price hikes
