New Lease on Life for Big Lots?
In a surprising turn of events, hundreds of Big Lots stores initially slated for closure may get a second chance. This comes after the discount retailer reached a deal with Gordon Brothers Retail Partners, a restructuring and investment firm, to transfer assets to other retailers.
A Glimmer of Hope
Earlier this month, Big Lots announced it would close all remaining locations – roughly 870 – and begin going-out-of-business sales. This decision followed an unsuccessful turnaround effort as part of ongoing bankruptcy proceedings, which had already seen several waves of store closures. However, it seems the company has found an alternative arrangement.
The Deal
According to a press release, Variety Wholesalers, a discount retail chain, plans to acquire between 200 and 400 Big Lots locations and operate them under the Big Lots brand. This move could potentially save thousands of jobs, as Variety “may employ” Big Lots employees who work at the stores.
Uncertainty Remains
While the news is promising, details about the deal are scarce. The companies have not disclosed which stores they plan to keep open or which regions of the country they will focus on. A Big Lots spokesperson confirmed that the retailer is not sharing additional information beyond the press release at this time.
About Variety Wholesalers
North Carolina-based Variety Wholesalers is the parent company of several discount retail chains, including Roses, Bill’s Dollar Stores, Super Dollar, and Bargain Town. It currently operates around 400 stores, concentrated in the Southeast and Mid-Atlantic regions. Big Lots, on the other hand, has stores in almost every state.
A Path Forward
“We are excited to partner with Gordon Brothers to provide a path forward for the Big Lots brand and hundreds of its stores,” said Variety CEO Lisa Seigies in a statement. “We look forward to working with members of the Big Lots team to realize the exciting opportunities ahead.” The agreement is still subject to the approval of a bankruptcy court.
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