Big Lots Secures Future with Strategic Sale
In a move to preserve its brand and protect thousands of jobs, Big Lots has announced a significant sale transaction with Gordon Brothers Retail Partners. This agreement will see the transfer of assets to other retailers, including the sale of between 200 and 400 stores and up to two distribution centers to Variety Wholesalers.
A New Chapter for Big Lots
The deal aims to ensure the continuity of the Big Lots brand, while also maximizing value for the estate. Variety Wholesalers plans to operate the acquired stores under the Big Lots brand, potentially employing Big Lots associates at these locations and distribution centers. This includes certain corporate associates necessary to support ongoing operations.
A Collective Effort
Big Lots president and CEO Bruce Thorn praised the agreement, stating, “This strategic sale to Gordon Brothers and the transfer to Variety Wholesalers is a favorable and significant achievement for Big Lots, reflecting the tireless work and collective effort of our team.” Thorn emphasized that the sale presents the strongest opportunity to preserve jobs and ensure the brand’s continuity.
A Brief History
In September, Big Lots entered into an asset purchase agreement with Gateway BL Acquisition, an affiliate of Nexus Capital Management. However, Nexus terminated this agreement in December, requesting a reimbursement of $1.5 million in expenses. The new transaction is pending approval by the Bankruptcy Court and is subject to customary closing conditions.
Partnership and Progress
Gordon Brothers Retail Partners North America Retail head Rick Edwards expressed enthusiasm for the agreement, stating, “We are pleased to reach this strategic agreement with Big Lots and partner with Variety Wholesalers to achieve a path forward that allows Big Lots to continue serving customers with extreme bargains and an outstanding shopping experience.”
Expert Guidance
Legal, financial, and real estate advisors have been engaged to assist Big Lots with the transaction process. Davis Polk & Wardwell is providing legal counsel, Guggenheim Securities is the financial advisor, AlixPartners is the restructuring advisor, and A&G Real Estate Partners is advising on real estate matters. Riemer & Braunstein acted as counsel to Gordon Brothers, with their Real Estate Services team handling real estate aspects for the buyer.
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