Retail Rescue: Big Lots Strikes Deal to Save Hundreds of Stores
In a surprising turn of events, Big Lots, the beleaguered retailer that filed for bankruptcy in September, has secured a deal to keep a significant portion of its stores open. The company announced a transaction with Gordon Brothers Retail Partners, a Boston-based asset liquidation firm, which will transfer 200 to 400 Big Lots stores to Variety Wholesalers, Inc.
A New Chapter for Big Lots
Variety Wholesalers, a Hendersonville, North Carolina-based company, owns and operates over 400 stores across the Mid-Atlantic and Southeast regions. The company plans to operate the acquired Big Lots stores under the same brand name and may retain current employees at the stores and distribution centers.
Preserving Jobs and Brand Continuity
The deal includes the transfer of Big Lots’ assets, including stores, distribution centers, and intellectual property. While the agreement is subject to bankruptcy court approval, Big Lots CEO Bruce Thorn hailed the transaction as a “favorable and significant achievement” that reflects the hard work of the company’s team. Thorn expressed gratitude to the company’s associates nationwide for their resilience throughout the process.
A Challenging Retail Landscape
Big Lots’ struggles are not unique in the current retail environment. The Container Store recently filed for bankruptcy protection, and Party City has gone out of business and filed for bankruptcy. The retailer’s initial plans to close all its stores were scrapped after a potential sale to Nexus Capital Management fell through. Prior to that, Big Lots had been closing stores as part of its bankruptcy process, with over 340 stores slated for closure.
A Glimmer of Hope
The deal with Gordon Brothers and Variety Wholesalers presents a glimmer of hope for Big Lots’ employees and customers. With over 1,300 stores across the U.S. as of March 2024, the company’s fate was uncertain. However, this transaction may pave the way for a brighter future for the brand.
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