The discount chain Big Lots, which filed for bankruptcy protection in September, has secured a deal that will allow hundreds of its stores and distribution centers to remain operational. Big Lots announced on Friday that it will be acquired by Gordon Brothers Retail Partners, a firm specializing in distressed companies. Gordon Brothers will then transfer Big Lots' assets to other retailers.
Variety Wholesalers Inc., a company that owns over 400 discount stores in the U.S. Southeast and Mid-Atlantic regions, is set to purchase between 200 and 400 Big Lots stores and operate them under the Big Lots brand. Variety Wholesalers will also take over up to two distribution centers as part of the agreement.
Big Lots' President and CEO, Bruce Thorn, expressed optimism about the sale agreement, stating that it offers the best chance to preserve jobs, maximize value for the estate, and ensure the continuity of the Big Lots brand. Thorn also acknowledged the dedication of Big Lots' employees nationwide throughout the bankruptcy process.
Headquartered in Columbus, Ohio, Big Lots is known for selling furniture, home decor, and various other items. The company attributed its financial struggles to factors such as inflation and high interest rates, which led consumers to reduce their spending on home and seasonal products – key revenue drivers for the chain.
Initially, Big Lots had planned to sell its assets and business operations to private equity firm Nexus Capital Management after filing for bankruptcy. However, the deal with Nexus fell through on December 20. Subsequently, Big Lots partnered with Gordon Brothers to facilitate going-out-of-business sales at its 869 locations across the United States.
