Big Lots Secures Deal to Keep Hundreds of Stores Open
In a move that will preserve hundreds of jobs and ensure the continuity of the Big Lots brand, the discount chain has reached a deal with Gordon Brothers Retail Partners to sell its assets. This comes after Big Lots filed for bankruptcy protection in September, citing inflation and high interest rates as major contributors to its financial struggles.
A New Chapter for Big Lots
Gordon Brothers, a firm specializing in distressed companies, will transfer Big Lots’ stores, distribution centers, and other assets to other retailers. One of these retailers is Variety Wholesalers Inc., which plans to acquire between 200 and 400 Big Lots stores and operate them under the Big Lots brand. Additionally, Variety Wholesalers will acquire up to two distribution centers.
Preserving Jobs and Value
“This sale agreement and transfer present the strongest opportunity to preserve jobs, maximize value for the estate, and ensure continuity of the Big Lots brand,” said Big Lots President and CEO Bruce Thorn. He expressed gratitude to the company’s associates nationwide for their resilience throughout the process.
Background on Big Lots’ Financial Struggles
Big Lots, based in Columbus, Ohio, sells furniture, home decor, and other items. When it filed for bankruptcy in September, it attributed its financial struggles to inflation and high interest rates, which led to a decline in consumer purchases of home and seasonal products – two categories that account for a significant portion of its revenue.
A Shift in Plans
Initially, Big Lots had planned to sell its assets and ongoing business operations to private equity firm Nexus Capital Management. However, the deal fell through on December 20. The company then partnered with Gordon Brothers to conduct going-out-of-business sales at its 869 U.S. locations. Fortunately, the new deal with Gordon Brothers and Variety Wholesalers will allow Big Lots to maintain a significant presence in the market.
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